*EH1278.1*
February 23, 2024
ENGROSSED
HOUSE BILL No. 1278
_____
DIGEST OF HB 1278 (Updated February 22, 2024 12:08 pm - DI 119)
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other sections of the Indiana Code that reference the repealed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
(Continued next page)
Effective: July 1, 2024.
Soliday, Jeter, Pierce M
(SENATE SPONSOR — KOCH)
January 9, 2024, read first time and referred to Committee on Utilities, Energy and
Telecommunications.
January 18, 2024, reported — Do Pass.
January 22, 2024, read second time, ordered engrossed. Engrossed.
January 23, 2024, read third time, passed. Yeas 86, nays 8.
SENATE ACTION
February 5, 2024, read first time and referred to Committee on Utilities.
February 22, 2024, amended, reported favorably — Do Pass.
EH 1278—LS 6966/DI 101 Digest Continued
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: (1) has adopted a commercial solar or wind
power regulation and the unit's regulation does not: (A) materially
differ from applicable industry or regulatory standards; or (B)
otherwise materially affect the ability of a project owner to develop a
commercial solar project or wind power project in the unit; or (2) has
other clear standards for the construction, installation, siting,
modification, operation, or decommissioning of commercial solar or
wind power systems and the unit's clear standards meet specified
requirements. 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.
EH 1278—LS 6966/DI 101EH 1278—LS 6966/DI 101 February 23, 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.
ENGROSSED
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.
EH 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) or 13(b) of this chapter, the center, if
36 established, may make a reasonable determination to certify
37 a unit as a commercial solar energy ready community if the
38 unit's commercial solar regulation under section 13(a) of this
39 chapter or clear standards under section 13(b) of this chapter,
40 as applicable, differ in one (1) or more respects from the
41 standards set forth in section 13(a) or 13(b) of this chapter, as
42 applicable; or
EH 1278—LS 6966/DI 101 3
1 (2) section 14(a) or 14(b) of this chapter, the center, if
2 established, may make a reasonable determination to certify
3 a unit as a wind energy ready community if the unit's wind
4 power regulation under section 14(a) of this chapter or clear
5 standards under section 14(b) of this chapter, as applicable,
6 differ in one (1) or more respects from the standards set forth
7 in section 14(a) or 14(b) of this chapter, as applicable;
8 if the unit's commercial solar regulation, wind power regulation,
9 or clear standards, as applicable, do not materially differ from
10 applicable industry or regulatory standards, or otherwise
11 materially affect the ability of a project owner to develop a project
12 in the unit.
13 SECTION 4. IC 4-3-23.1-13, AS AMENDED BY THE
14 TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
15 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2024]: Sec. 13. (a) A unit may apply to the office for
17 certification as a commercial solar energy ready community. The
18 application must be in a form and manner prescribed by the office.
19 Subject to section 12(c) of this chapter, the office may approve an
20 application and certify a unit as a commercial solar energy ready
21 community if the office determines the following:
22 (1) That the unit has adopted a commercial solar regulation that
23 includes clear standards for the construction, installation, siting,
24 modification, operation, or decommissioning of one (1) or more
25 commercial solar energy systems (as defined in IC 8-1-42-2) in
26 the unit.
27 (2) That the unit's commercial solar regulation:
28 (A) includes standards that are not more restrictive, directly or
29 indirectly, than the default standards for commercial solar
30 energy systems set forth in IC 8-1-42;
31 (B) provides a clear and transparent process for project owners
32 to identify potential commercial solar project sites;
33 (C) does not unreasonably eliminate portions of the unit as
34 sites for commercial solar projects;
35 (D) provides for a fair review and approval process for
36 proposed commercial solar projects, including final approval
37 that cannot be revoked; and
38 (E) includes a specific plan for using any funds from an
39 incentive granted by the office under subsection (b): (d):
40 (i) for economic development purposes within or near the
41 commercial solar project's footprint; or
42 (ii) to otherwise benefit residents and businesses within or
EH 1278—LS 6966/DI 101 4
1 near the commercial solar project's footprint.
2 (3) That the unit has demonstrated a commitment to maintain:
3 (A) the standards and procedural framework set forth in the
4 unit's commercial solar regulation; and
5 (B) all applicable zoning, land use, and planning regulations;
6 with respect to any particular commercial solar project that is
7 approved under the unit's commercial solar regulation, for a
8 period of at least ten (10) years, beginning with the start date of
9 the commercial solar project's full commercial operation.
10 operation or the date of the office's certification of the unit
11 under this section, whichever is later.
12 (b) If a unit has not adopted a commercial solar regulation, the
13 unit may apply to the office for certification as a commercial solar
14 energy ready community. The application must be in a form and
15 manner prescribed by the office. Subject to section 12(c) of this
16 chapter, the office may approve an application and certify a unit
17 as a commercial solar energy ready community if the office
18 determines the following:
19 (1) That the unit has clear standards for the construction,
20 installation, siting, modification, operation, or
21 decommissioning of one (1) or more commercial solar energy
22 systems (as defined in IC 8-1-42-2) in the unit.
23 (2) That the unit's clear standards:
24 (A) are not more restrictive, directly or indirectly, than the
25 default standards for commercial solar energy systems set
26 forth in IC 8-1-42;
27 (B) provide a clear and transparent process for project
28 owners to identify potential commercial solar project sites;
29 (C) do not unreasonably eliminate portions of the unit as
30 sites for commercial solar projects;
31 (D) provide for a fair review and approval process for
32 proposed commercial solar projects, including final
33 approval that cannot be revoked; and
34 (E) include a specific plan for using any funds from an
35 incentive granted by the office under subsection (d):
36 (i) for economic development purposes within or near
37 the commercial solar project's footprint; or
38 (ii) to otherwise benefit residents and businesses within
39 or near the commercial solar project's footprint.
40 (3) That the unit has demonstrated a commitment to maintain
41 its clear standards for a period of at least ten (10) years,
42 beginning with the start date of the commercial solar project's
EH 1278—LS 6966/DI 101 5
1 full commercial operation or the office's certification of the
2 unit under this section, whichever is later.
3 (c) For purposes of subsection (b), the office may consider one
4 (1) or more of the following as evidence of a unit's clear standards
5 with respect to the construction, installation, siting, modification,
6 operation, or decommissioning of one (1) or more commercial solar
7 energy systems (as defined in IC 8-1-42-2) in the unit:
8 (1) A contract or an otherwise binding agreement between the
9 unit and a project owner.
10 (2) An economic development agreement.
11 (3) Any other documentation that the office determines
12 provides sufficient evidence of the unit's clear standards.
13 (b) (d) If:
14 (1) a unit receives certification as a commercial solar energy
15 ready community by the office under this section;
16 (2) after the unit's certification, a project owner constructs a
17 commercial solar project is constructed or has been constructed
18 in the unit; and
19 (3) the fund is established and there is a sufficient balance in the
20 fund;
21 the office may authorize the unit to receive from the fund, for a period
22 of ten (10) years beginning with the start date of the commercial solar
23 project's full commercial operation, operation or the date of the
24 office's certification of the unit under this section, whichever is
25 later, one dollar ($1) per megawatt hour of electricity generated by the
26 commercial solar project, if the office determines that the procedures
27 and standards set forth in the unit's commercial solar regulation under
28 subsection (a) or the unit's clear standards under subsection (b), as
29 applicable, were adhered to in the development of the project.
30 However, if the office determines at any time after the start of the
31 commercial solar project's full commercial operation that the unit has
32 failed to continue to meet the requirement for certification set forth in
33 subsection (a)(3), (a)(3) or (b)(3), as applicable, the office shall
34 discontinue the incentive granted under this subsection and shall
35 require the unit to return to the fund any amounts collected by the unit
36 under this subsection after the unit's breach of the requirement for
37 certification set forth in subsection (a)(3). (a)(3) or (b)(3), as
38 applicable.
39 (c) (e) After:
40 (1) a unit receives certification as a commercial solar energy
41 ready community under this section; and
42 (2) a project owner constructs a commercial solar energy facility
EH 1278—LS 6966/DI 101 6
1 project that qualifies the unit to receive the incentive payments
2 under subsection (b); (d);
3 the project owner shall annually report to the office the total megawatt
4 hours generated by the commercial solar energy facility project in the
5 previous year.
6 SECTION 5. IC 4-3-23.1-14, AS AMENDED BY THE
7 TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
8 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2024]: Sec. 14. (a) A unit may apply to the office for
10 certification as a wind energy ready community. The application must
11 be in a form and manner prescribed by the office. Subject to section
12 12(c) of this chapter, the office may approve an application and certify
13 a unit as a wind energy ready community if the office determines the
14 following:
15 (1) That the unit has adopted a wind power regulation that
16 includes clear standards for the construction, installation, siting,
17 modification, operation, or decommissioning of one (1) or more
18 wind power devices (as defined in IC 8-1-41-7) in the unit.
19 (2) That the unit's wind power regulation:
20 (A) includes standards that are not more restrictive, directly or
21 indirectly, than the default standards for wind power devices
22 set forth in IC 8-1-41;
23 (B) provides a clear and transparent process for project owners
24 to identify potential wind power project sites;
25 (C) does not unreasonably eliminate portions of the unit as
26 sites for wind power projects;
27 (D) provides for a fair review and approval process for
28 proposed wind power projects, including final approval that
29 cannot be revoked; and
30 (E) includes a specific plan for using any funds from an
31 incentive granted by the office under subsection (b): (d):
32 (i) for economic development purposes within or near the
33 wind power project's footprint; or
34 (ii) to otherwise benefit residents and businesses within or
35 near the wind power project's footprint.
36 (3) That the unit has demonstrated a commitment to maintain:
37 (A) the standards and procedural framework set forth in the
38 unit's wind power regulation; and
39 (B) all applicable zoning, land use, and planning regulations;
40 with respect to any particular wind power project that is approved
41 under the unit's commercial solar wind power regulation, for a
42 period of at least ten (10) years, beginning with the start date of
EH 1278—LS 6966/DI 101 7
1 the wind power project's full commercial operation. operation or
2 the date of the office's certification of the unit under this
3 section, whichever is later.
4 (b) If a unit has not adopted a wind power regulation, the unit
5 may apply to the office for certification as a wind energy ready
6 community. The application must be in a form and manner
7 prescribed by the office. Subject to section 12(c) of this chapter, the
8 office may approve an application and certify a unit as a wind
9 energy ready community if the office determines the following:
10 (1) That the unit has clear standards for the construction,
11 installation, siting, modification, operation, or
12 decommissioning of one (1) or more wind power devices (as
13 defined in IC 8-1-41-7) in the unit.
14 (2) That the unit's clear standards:
15 (A) are not more restrictive, directly or indirectly, than the
16 default standards for wind power devices set forth in
17 IC 8-1-41;
18 (B) provide a clear and transparent process for project
19 owners to identify potential wind power project sites;
20 (C) do not unreasonably eliminate portions of the unit as
21 sites for wind power projects;
22 (D) provide for a fair review and approval process for
23 proposed wind power projects, including final approval
24 that cannot be revoked; and
25 (E) include a specific plan for using any funds from an
26 incentive granted by the office under subsection (d):
27 (i) for economic development purposes within or near
28 the wind power project's footprint; or
29 (ii) to otherwise benefit residents and businesses within
30 or near the wind power project's footprint.
31 (3) That the unit has demonstrated a commitment to maintain
32 its clear standards for a period of at least ten (10) years,
33 beginning with the start date of the wind power project's full
34 commercial operation or date of the office's certification of
35 the unit under this section, whichever is later.
36 (c) For purposes of subsection (b), the office may consider one
37 (1) or more of the following as evidence of a unit's clear standards
38 with respect to the construction, installation, siting, modification,
39 operation, or decommissioning of one (1) or more wind power
40 devices (as defined in IC 8-1-41-7) in the unit:
41 (1) A contract or an otherwise binding agreement between the
42 unit and a project owner.
EH 1278—LS 6966/DI 101 8
1 (2) An economic development agreement.
2 (3) Any other documentation that the office determines
3 provides sufficient evidence of the unit's clear standards.
4 (b) (d) If:
5 (1) a unit receives certification as a wind energy ready community
6 by the office under this section;
7 (2) after the unit's certification, a project owner constructs a wind
8 power project is constructed or has been constructed in the
9 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 wind power
14 project's full commercial operation, operation or the date of the
15 office's certification of the unit under this section, whichever is
16 later, one dollar ($1) per megawatt hour of electricity generated by the
17 wind power project, if the office determines that the procedures and
18 standards set forth in the unit's wind power regulation under
19 subsection (a) or the unit's clear standards under subsection (b), as
20 applicable, were adhered to in the development of the project.
21 However, if the office determines at any time after the start of the wind
22 power project's full commercial operation that the unit has failed to
23 continue to meet the requirement for certification set forth in
24 subsection (a)(3), (a)(3) or (b)(3), as applicable, the office shall
25 discontinue the incentive granted under this subsection and shall
26 require the unit to return to the fund any amounts collected by the unit
27 under this subsection after the unit's breach of the requirement for
28 certification set forth in subsection (a)(3). (a)(3) or (b)(3), as
29 applicable.
30 (c) (e) After:
31 (1) a unit receives certification as a wind energy ready community
32 under this section; and
33 (2) a project owner constructs a wind energy facility power
34 project that qualifies the unit to receive the incentive under
35 subsection (b); (d);
36 the project owner shall annually report to the office the total megawatt
37 hours generated by the wind energy facility power project in the
38 previous year.
39 SECTION 6. IC 4-3-23.1-16, AS ADDED BY P.L.50-2023,
40 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2024]: Sec. 16. (a) The commercial solar and wind energy
42 ready communities incentive fund may be established by the office for
EH 1278—LS 6966/DI 101 9
1 the purpose of:
2 (1) providing payments to commercial solar energy ready
3 communities under section 13(b) 13(d) of this chapter; and
4 (2) providing payments to wind energy ready communities under
5 section 14(b) 14(d) of this chapter.
6 (b) The fund, if established, shall be administered by the office.
7 (c) The fund, if established, shall consist of:
8 (1) grants, gifts, and donations intended for deposit in the fund;
9 (2) federal funds;
10 (3) interest that accrues from money in the fund; and
11 (4) any amounts returned to the fund by units under section 13(b)
12 13(d) or 14(b) 14(d) of this chapter.
13 (d) The treasurer of state shall invest the money in the fund not
14 currently needed to meet the obligations of the fund in the same
15 manner as other public money may be invested.
16 SECTION 7. IC 4-4-32.2 IS REPEALED [EFFECTIVE JULY 1,
17 2024]. (Alternative Fuel Fueling Station Grant Program).
18 SECTION 8. IC 4-4-32.3 IS REPEALED [EFFECTIVE JULY 1,
19 2024]. (Alternative Fuel Vehicle Grant Program for Local Units).
20 SECTION 9. IC 4-12-12-6, AS AMENDED BY P.L.152-2018,
21 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2024]: Sec. 6. Money in the account that is not otherwise
23 designated under section 3 of this chapter is annually dedicated to the
24 following:
25 (1) The Indiana economic development partnership fund under
26 IC 4-12-10.
27 (2) The scientific instrument project within the department of
28 education.
29 (3) The coal technology research fund under IC 21-47-4-5 (before
30 its repeal on July 1, 2024).
31 SECTION 10. IC 4-13-16.5-2, AS AMENDED BY P.L.15-2020,
32 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2024]: Sec. 2. (a) There is established a governor's
34 commission on supplier diversity. The commission shall consist of the
35 following members:
36 (1) A governor's designee, who shall serve as chairman of the
37 commission.
38 (2) The commissioner of the Indiana department of transportation,
39 or the economic opportunity director of the Indiana department of
40 transportation if the commissioner of the Indiana department of
41 transportation so designates.
42 (3) The chairperson of the board of the Indiana economic
EH 1278—LS 6966/DI 101 10
1 development corporation or the chairperson's designee.
2 (4) The commissioner.
3 (5) Nine (9) individuals with demonstrated capabilities in
4 business and industry, especially minority business enterprises,
5 women's business enterprises, and veteran owned small
6 businesses, appointed by the governor from the following
7 geographical areas of the state:
8 (A) Three (3) from the northern one-third (1/3) of the state.
9 (B) Three (3) from the central one-third (1/3) of the state.
10 (C) Three (3) from the southern one-third (1/3) of the state.
11 (6) Two (2) members of the house of representatives, no more
12 than one (1) from the same political party, appointed by the
13 speaker of the house of representatives to serve in a nonvoting
14 advisory capacity.
15 (7) Two (2) members of the senate, no more than one (1) from the
16 same political party, appointed by the president pro tempore of
17 the senate to serve in a nonvoting advisory capacity.
18 (8) The deputy commissioner, who shall serve as a nonvoting
19 member.
20 Not more than six (6) of the ten (10) members appointed or designated
21 by the governor may be of the same political party. Appointed members
22 of the commission shall serve four (4) year terms. A vacancy occurs if
23 a legislative member leaves office for any reason. Any vacancy on the
24 commission shall be filled in the same manner as the original
25 appointment.
26 (b) Each member of the commission who is not a state employee is
27 entitled to the following:
28 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
29 (2) Reimbursement for traveling expenses and other expenses
30 actually incurred in connection with the member's duties as
31 provided under IC 4-13-1-4 and in the state travel policies and
32 procedures established by the Indiana department of
33 administration and approved by the budget agency.
34 (c) Each legislative member of the commission is entitled to receive
35 the same per diem, mileage, and travel allowances established by the
36 legislative council and paid to members of the general assembly
37 serving on interim study committees. The allowances specified in this
38 subsection shall be paid by the legislative services agency from the
39 amounts appropriated for that purpose.
40 (d) A member of the commission who is a state employee but who
41 is not a member of the general assembly is not entitled to any of the
42 following:
EH 1278—LS 6966/DI 101 11
1 (1) The minimum salary per diem provided by IC 4-10-11-2.1(b).
2 (2) Reimbursement for traveling expenses as provided under
3 IC 4-13-1-4.
4 (3) Other expenses actually incurred in connection with the
5 member's duties.
6 (e) The commission shall meet at least four (4) times each year and
7 at other times as the chairman considers necessary.
8 (f) The duties of the commission shall include but not be limited to
9 the following:
10 (1) Identify minority business enterprises, women's business
11 enterprises, and veteran owned small businesses in the state.
12 (2) Assess the needs of minority business enterprises, women's
13 business enterprises, and veteran owned small businesses.
14 (3) Initiate aggressive programs to assist minority business
15 enterprises, women's business enterprises, and veteran owned
16 small businesses in obtaining state contracts.
17 (4) Give special publicity to procurement, bidding, and qualifying
18 procedures.
19 (5) Include minority business enterprises, women's business
20 enterprises, and veteran owned small businesses on solicitation
21 mailing lists.
22 (6) Evaluate the competitive differences between qualified
23 minority or women's nonprofit corporations and other than
24 qualified minority or women's nonprofit corporations and veteran
25 owned small businesses that offer similar services and make
26 recommendation to the department on policy changes necessary
27 to ensure fair competition among minority business enterprises,
28 women's business enterprises, and veteran owned small
29 businesses.
30 (7) Define the duties, goals, and objectives of the deputy
31 commissioner of the department as created under this chapter to
32 assure compliance by all state agencies, separate bodies corporate
33 and politic, and state educational institutions with state and
34 federal legislation and policy concerning the awarding of
35 contracts (including, notwithstanding section 1(d) of this chapter
36 or any other law, contracts of state educational institutions) to
37 minority business enterprises, women's business enterprises, and
38 veteran owned small businesses.
39 (8) Establish annual goals:
40 (A) for the use of minority and women's business enterprises;
41 and
42 (B) derived from a statistical analysis of utilization study of
EH 1278—LS 6966/DI 101 12
1 state contracts (including, notwithstanding section 1(d) of this
2 chapter or any other law, contracts of state educational
3 institutions) that are required to be updated every five (5)
4 years.
5 (9) Prepare a review of the commission and the various affected
6 departments of government to be submitted to the governor and
7 the legislative council on March 1 and October 1 of each year,
8 evaluating progress made in the areas defined in this subsection.
9 (10) Ensure that the statistical analysis required under this
10 section:
11 (A) is based on goals for participation of minority business
12 enterprises established in Richmond v. Croson, 488 U.S. 469
13 (1989);
14 (B) includes information on both contracts and subcontracts
15 (including, notwithstanding section 1(d) of this chapter or any
16 other law, contracts and subcontracts of state educational
17 institutions); and
18 (C) uses data on the combined capacity of minority business
19 enterprises, women's business enterprises, and veteran owned
20 small businesses in Indiana and not just regional data.
21 (11) Establish annual goals for the use of minority business
22 enterprises, women's business enterprises, and veteran owned
23 small businesses for any contract that:
24 (A) will be paid for in whole or in part with state grant funds;
25 and
26 (B) involves the use of real property of a unit. (as defined in
27 IC 4-4-32.2-9).
28 (12) Ensure compliance with the establishment and evaluation of
29 the annual goal for veteran owned small businesses established in
30 section 3.5 of this chapter.
31 (g) The department shall direct contractors to demonstrate a good
32 faith effort to meet the annual participation goals established under
33 subsection (f)(11). The good faith effort shall be demonstrated by
34 contractors using the repository of certified firms created under section
35 3 of this chapter or a similar repository maintained by a unit. (as
36 defined in IC 4-4-32.2-9).
37 (h) The department shall adopt rules of ethics under IC 4-22-2 for
38 commission members other than commission members appointed
39 under subsection (a)(6) or (a)(7).
40 (i) The department shall furnish administrative support and staff as
41 is necessary for the effective operation of the commission.
42 (j) The commission shall advise the department on developing a
EH 1278—LS 6966/DI 101 13
1 statement, to be included in all applications for and agreements
2 governing grants made with state funds, stating the importance of the
3 use of minority business enterprises, women's business enterprises, and
4 veteran owned small businesses in fulfilling the purposes of the grant.
5 (k) For purposes of subsections (f)(11) and (g), "unit" means a
6 county, city, town, township, or school corporation.
7 SECTION 11. IC 4-23-5.5-11 IS REPEALED [EFFECTIVE JULY
8 1, 2024]. Sec. 11. The office may establish and administer a revolving
9 loan program for the purpose of making low interest loans to projects
10 designed to promote the development and efficient use of energy
11 resources or to promote recycling market development. The interest
12 rates for the loans shall be fixed by the office. The office may consult
13 with the board in implementing this section.
14 SECTION 12. IC 4-23-5.5-16 IS REPEALED [EFFECTIVE JULY
15 1, 2024]. Sec. 16. (a) As used in this section, "center" refers to the
16 center for coal technology research established by IC 21-47-4-1.
17 (b) The Indiana coal research grant fund is established for the
18 purpose of providing grants for research and other projects designed to
19 develop and expand markets for Indiana coal. The fund shall be
20 administered by the office.
21 (c) Sources of money for the fund consist of the following:
22 (1) Appropriations from the general assembly.
23 (2) Donations, gifts, and money received from any other source,
24 including transfers from other funds or accounts.
25 (d) Money remaining in the fund at the end of a state fiscal year
26 does not revert to the state general fund.
27 (e) The treasurer of state shall invest the money in the fund not
28 currently needed to meet the obligations of the fund in the same
29 manner as other public funds may be invested. Interest that accrues
30 from these investments shall be deposited in the fund.
31 (f) The center shall establish:
32 (1) amounts for grants under this section; and
33 (2) criteria for awarding grants under this section.
34 (g) A person, business, or manufacturer that wants a grant from the
35 fund must file an application in the manner prescribed by the center.
36 (h) The center shall appoint a panel of at least eight (8) members to
37 review and make recommendations to the center about each application
38 filed under this section. To be a member of the panel, an individual
39 must be a scientist, a professional engineer registered under
40 IC 25-31-1, or another professional who is familiar with coal
41 combustion, coal properties, coal byproducts, and other coal uses.
42 (i) The director of the office shall pursue available private and
EH 1278—LS 6966/DI 101 14
1 public sources of money for the fund.
2 SECTION 13. IC 5-28-41-4, AS ADDED BY P.L.165-2021,
3 SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2024]: Sec. 4. (a) As used in this chapter, "qualified nonprofit
5 organization" means a private, nonprofit entity formed as a partnership
6 between local units, (as defined in IC 4-4-32.2-9), private sector
7 businesses, or community or philanthropic organizations to develop
8 and implement a regional economic acceleration and development
9 strategy that has an organizational structure that conforms with the
10 requirements of a policy developed by the corporation under section 16
11 of this chapter.
12 (b) For purposes of subsection (a), a "local unit" means a
13 county, city, town, township, or school corporation.
14 SECTION 14. IC 5-28-43-4, AS ADDED BY P.L.201-2023,
15 SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2024]: Sec. 4. (a) As used in this chapter, "qualified nonprofit
17 organization" means a private, nonprofit entity formed as a partnership
18 between local units, (as defined in IC 4-4-32.2-9), private sector
19 businesses, or community or philanthropic organizations to develop
20 and implement a regional economic acceleration and development
21 strategy that has an organizational structure that conforms with the
22 requirements of a policy developed by the corporation under section 16
23 of this chapter.
24 (b) For purposes of subsection (a), a "local unit" means a
25 county, city, town, township, or school corporation.
26 SECTION 15. IC 8-1-2-61, AS AMENDED BY P.L.94-2022,
27 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2024]: Sec. 61. (a) Any public utility may make complaint as
29 to any matter affecting its own rates or service. The petition or
30 complaint must include a statement as to whether the utility, if a
31 not-for-profit water utility or municipal utility, has any outstanding
32 indebtedness to the federal government. The public utility shall publish
33 a notice of the filing of such petition or complaint in a newspaper of
34 general circulation published in any county in which the public utility
35 renders service. An order affecting rates or service may be entered by
36 the commission without a formal public hearing, if:
37 (1) the utility is a not-for-profit water utility or a municipal utility;
38 and
39 (2) the utility has obtained written consent to obtain an order
40 affecting its rates from the commission without a formal hearing
41 from any agency of the federal government with which the utility
42 has outstanding evidence of indebtedness to the federal
EH 1278—LS 6966/DI 101 15
1 government.
2 The commission may, however, on its own motion require a formal
3 public hearing, and shall, upon a motion filed by the utility consumer
4 counselor, by any public or municipal corporation, or by ten (10)
5 individuals, firms, corporations, limited liability companies, or
6 associations, or ten (10) complainants of all or any of these classes,
7 hold a formal public hearing with respect to any such petition or
8 complaint.
9 (b) In any general rate proceeding under subsection (a) which
10 requires a public hearing and in which an increase in revenues is
11 sought which exceeds the sum of two million five hundred thousand
12 dollars ($2,500,000), the commission shall conduct at least one (1)
13 public hearing in one (1) of the following, as determined by the
14 commission:
15 (1) The largest municipality located within such the utility's
16 service area.
17 (2) The municipality containing the largest number of
18 customers served by the utility.
19 (3) The county containing the largest number of customers
20 served by the utility.
21 (c) In a proceeding brought by an energy utility (as defined in
22 IC 8-1-2.5-2) under this section, the commission may approve:
23 (1) time-varying price structures and tariffs; or
24 (2) other alternative pricing structures and tariffs;
25 for retail energy service (as defined in IC 8-1-2.5-3), such as
26 time-of-use or off-peak pricing, critical peak pricing, variable peak
27 pricing, and real-time pricing.
28 SECTION 16. IC 8-1-8.8-13 IS REPEALED [EFFECTIVE JULY
29 1, 2024]. Sec. 13. An eligible business shall file a monthly report with
30 the lieutenant governor stating the following information:
31 (1) The amount of Illinois Basin coal, if any, purchased during the
32 previous month for use in a new energy production or generating
33 facility.
34 (2) The amount of any fuel or energy produced by:
35 (A) a coal gasification facility; or
36 (B) a nuclear energy production or generating facility;
37 that is purchased by the eligible business during the previous
38 month.
39 (3) Any other information the lieutenant governor may reasonably
40 require.
41 SECTION 17. IC 8-1-13-38 IS AMENDED TO READ AS
42 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 38. (a) Any corporation
EH 1278—LS 6966/DI 101 16
1 may make complaint as to any matter affecting its own rates or service.
2 The corporation shall publish a notice of the filing of the petition or
3 complaint in a newspaper of general circulation published in any
4 county in which the corporation renders service. An order affecting
5 rates or service may be entered by the commission without a formal
6 public hearing, if the corporation has obtained written consent to obtain
7 an order affecting its rates from the commission without a formal
8 hearing from any agency of the federal government with which the
9 corporation has outstanding evidence of indebtedness to the federal
10 government. The commission may, however, on its own motion require
11 a formal public hearing, and shall, upon a motion filed by the utility
12 consumer counselor, by any public or municipal corporation, by ten
13 (10) individuals, firms, corporations, limited liability companies, or
14 associations, or by ten (10) complainants of any or all of these classes,
15 hold a formal public hearing with respect to any petition or complaint.
16 (b) In any general rate proceeding under subsection (a) which
17 requires a public hearing and in which an increase in revenues is
18 sought which exceeds the sum of two million five hundred thousand
19 dollars ($2,500,000), the commission shall conduct at least one (1)
20 public hearing in one (1) of the following, as determined by the
21 commission:
22 (1) The largest municipality located within the corporation's
23 service area.
24 (2) The municipality containing the largest number of
25 customers served by the corporation.
26 (3) The county containing the largest number of customers
27 served by the corporation.
28 SECTION 18. IC 8-1-13.1-5 IS REPEALED [EFFECTIVE JULY
29 1, 2024]. Sec. 5. As used in this chapter, "director" refers to the director
30 of the office of alternative energy incentives serving under section 9(b)
31 of this chapter.
32 SECTION 19. IC 8-1-13.1-6 IS REPEALED [EFFECTIVE JULY
33 1, 2024]. Sec. 6. As used in this chapter, "fund" refers to the alternative
34 energy incentive fund established by section 10 of this chapter.
35 SECTION 20. IC 8-1-13.1-7 IS REPEALED [EFFECTIVE JULY
36 1, 2024]. Sec. 7. As used in this chapter, "office" refers to the office of
37 alternative energy incentives established by section 9 of this chapter.
38 SECTION 21. IC 8-1-13.1-9 IS REPEALED [EFFECTIVE JULY
39 1, 2024]. Sec. 9. (a) The office of alternative energy incentives is
40 established within the Indiana office of energy development established
41 by IC 4-3-23-3.
42 (b) The:
EH 1278—LS 6966/DI 101 17
1 (1) director of the Indiana office of energy development; or
2 (2) designee of the Indiana office of energy development, who
3 must be qualified by knowledge of or experience in the electric
4 utility industry;
5 shall serve as the director of the office.
6 (c) The director:
7 (1) serves at the pleasure of and is responsible to the director of
8 the Indiana office of energy development, if the director is a
9 designee of the director of the Indiana office of energy
10 development;
11 (2) may receive compensation in an amount determined by the
12 director of the Indiana office of energy development, subject to
13 the approval of the budget agency, if the director is a designee of
14 the director of the Indiana office of energy development;
15 (3) serves as the chief executive and administrative officer of the
16 office; and
17 (4) may, to the extent appropriate, delegate the director's authority
18 under this chapter, subject to the approval of:
19 (A) the director of the Indiana office of energy development,
20 if the director is a designee of the director of the Indiana office
21 of energy development; and
22 (B) the budget agency.
23 (d) The director of the Indiana office of energy development may:
24 (1) establish; and
25 (2) appoint members to;
26 an advisory board to advise the office in the administration of this
27 chapter.
28 SECTION 22. IC 8-1-13.1-10 IS REPEALED [EFFECTIVE JULY
29 1, 2024]. Sec. 10. (a) The alternative energy incentive fund is
30 established for the purpose of providing funds to corporations for use
31 in the development of alternative energy projects. The fund shall be
32 administered by the office.
33 (b) The fund consists of:
34 (1) money appropriated to the fund by the general assembly;
35 (2) money received from state or federal grants or programs for
36 alternative energy projects; and
37 (3) donations, gifts, and money received from any other source,
38 including transfers from other funds or accounts.
39 (c) Money in the fund is continuously appropriated for the purposes
40 of this section.
41 (d) Money in the fund may be spent only in accordance with this
42 chapter and to carry out the purposes of this chapter.
EH 1278—LS 6966/DI 101 18
1 (e) The expenses of administering the fund shall be paid from
2 money in the fund.
3 (f) Notwithstanding IC 5-13, the treasurer of state shall invest the
4 money in the fund not currently needed to meet the obligations of the
5 fund in the same manner as money is invested by the Indiana public
6 retirement system under IC 5-10.3-5. The treasurer of state may
7 contract with investment management professionals, investment
8 advisers, and legal counsel to assist in the investment of the fund and
9 may pay the expenses incurred under those contracts from the fund.
10 Interest that accrues from these investments shall be deposited in the
11 fund.
12 (g) Money in the fund at the end of a state fiscal year does not revert
13 to the state general fund.
14 SECTION 23. IC 21-47-1-2 IS REPEALED [EFFECTIVE JULY 1,
15 2024]. Sec. 2. "Center", for purposes of IC 21-47-4, refers to the center
16 for coal technology research established by IC 21-47-4-1.
17 SECTION 24. IC 21-47-1-3 IS REPEALED [EFFECTIVE JULY 1,
18 2024]. Sec. 3. "Fund", for purposes of IC 21-47-4, refers to the coal
19 technology research fund established by IC 21-47-4-5.
20 SECTION 25. IC 21-47-4 IS REPEALED [EFFECTIVE JULY 1,
21 2024]. (Center for Coal Technology Research).
EH 1278—LS 6966/DI 101 19
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
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Utilities, to which was
referred House Bill No. 1278, has had the same under consideration
and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
Page 2, line 35, after "13(a)" insert "or 13(b)".
Page 2, line 38, delete "differs" and insert "under section 13(a) of
this chapter or clear standards under section 13(b) of this chapter,
as applicable, differ".
Page 2, line 39, after "13(a)" insert "or 13(b)".
Page 2, line 40, delete "chapter;" and insert "chapter, as
applicable;".
Page 2, line 41, after "14(a)" insert "or 14(b)".
Page 3, line 2, delete "differs" and insert "under section 14(a) of
this chapter or clear standards under section 14(b) of this chapter,
as applicable, differ".
Page 3, line 3, delete "of this chapter;" and insert "or 14(b) of this
chapter, as applicable;".
Page 3, line 4, delete "regulation or wind power regulation," and
insert "regulation, wind power regulation, or clear standards,".
Page 3, line 5, delete "does" and insert "do".
Page 3, line 34, strike "(b):" and insert "(d):".
Page 4, line 4, strike "operation." and insert "operation or the date
of the office's certification of the unit under this section, whichever
is later.".
Page 4, between lines 4 and 5, begin a new paragraph and insert:
"(b) If a unit has not adopted a commercial solar regulation, the
unit may apply to the office for certification as a commercial solar
energy ready community. The application must be in a form and
EH 1278—LS 6966/DI 101 20
manner prescribed by the office. Subject to section 12(c) of this
chapter, the office may approve an application and certify a unit
as a commercial solar energy ready community if the office
determines the following:
(1) That the unit has clear standards for the construction,
installation, siting, modification, operation, or
decommissioning of one (1) or more commercial solar energy
systems (as defined in IC 8-1-42-2) in the unit.
(2) That the unit's clear standards:
(A) are not more restrictive, directly or indirectly, than the
default standards for commercial solar energy systems set
forth in IC 8-1-42;
(B) provide a clear and transparent process for project
owners to identify potential commercial solar project sites;
(C) do not unreasonably eliminate portions of the unit as
sites for commercial solar projects;
(D) provide for a fair review and approval process for
proposed commercial solar projects, including final
approval that cannot be revoked; and
(E) include a specific plan for using any funds from an
incentive granted by the office under subsection (d):
(i) for economic development purposes within or near
the commercial solar project's footprint; or
(ii) to otherwise benefit residents and businesses within
or near the commercial solar project's footprint.
(3) That the unit has demonstrated a commitment to maintain
its clear standards for a period of at least ten (10) years,
beginning with the start date of the commercial solar project's
full commercial operation or the office's certification of the
unit under this section, whichever is later.
(c) For purposes of subsection (b), the office may consider one
(1) or more of the following as evidence of a unit's clear standards
with respect to the construction, installation, siting, modification,
operation, or decommissioning of one (1) or more commercial solar
energy systems (as defined in IC 8-1-42-2) in the unit:
(1) A contract or an otherwise binding agreement between the
unit and a project owner.
(2) An economic development agreement.
(3) Any other documentation that the office determines
provides sufficient evidence of the unit's clear standards.".
Page 4, line 5, strike "(b)" and insert "(d)".
Page 4, line 8, strike "a project owner constructs".
EH 1278—LS 6966/DI 101 21
Page 4, line 9, after "project" insert "is constructed or has been
constructed".
Page 4, line 14, strike "operation," and insert "operation or the
date of the office's certification of the unit under this section,
whichever is later,".
Page 4, line 17, after "regulation" insert "under subsection (a) or
the unit's clear standards under subsection (b), as applicable,".
Page 4, line 21, strike "(a)(3)," and insert "(a)(3) or (b)(3), as
applicable,".
Page 4, line 24, strike "(a)(3)." and insert "(a)(3) or (b)(3), as
applicable.".
Page 4, line 25, strike "(c)" and insert "(e)".
Page 4, line 30, strike "(b);" and insert "(d);".
Page 5, line 17, strike "(b):" and insert "(d):".
Page 5, line 29, strike "operation." and insert "operation or the
date of the office's certification of the unit under this section,
whichever is later.".
Page 5, between lines 29 and 30, begin a new paragraph and insert:
"(b) If a unit has not adopted a wind power regulation, the unit
may apply to the office for certification as a wind energy ready
community. The application must be in a form and manner
prescribed by the office. Subject to section 12(c) of this chapter, the
office may approve an application and certify a unit as a wind
energy ready community if the office determines the following:
(1) That the unit has clear standards for the construction,
installation, siting, modification, operation, or
decommissioning of one (1) or more wind power devices (as
defined in IC 8-1-41-7) in the unit.
(2) That the unit's clear standards:
(A) are not more restrictive, directly or indirectly, than the
default standards for wind power devices set forth in
IC 8-1-41;
(B) provide a clear and transparent process for project
owners to identify potential wind power project sites;
(C) do not unreasonably eliminate portions of the unit as
sites for wind power projects;
(D) provide for a fair review and approval process for
proposed wind power projects, including final approval
that cannot be revoked; and
(E) include a specific plan for using any funds from an
incentive granted by the office under subsection (d):
(i) for economic development purposes within or near
EH 1278—LS 6966/DI 101 22
the wind power project's footprint; or
(ii) to otherwise benefit residents and businesses within
or near the wind power project's footprint.
(3) That the unit has demonstrated a commitment to maintain
its clear standards for a period of at least ten (10) years,
beginning with the start date of the wind power project's full
commercial operation or date of the office's certification of
the unit under this section, whichever is later.
(c) For purposes of subsection (b), the office may consider one
(1) or more of the following as evidence of a unit's clear standards
with respect to the construction, installation, siting, modification,
operation, or decommissioning of one (1) or more wind power
devices (as defined in IC 8-1-41-7) in the unit:
(1) A contract or an otherwise binding agreement between the
unit and a project owner.
(2) An economic development agreement.
(3) Any other documentation that the office determines
provides sufficient evidence of the unit's clear standards.".
Page 5, line 30, strike "(b)" and insert "(d)".
Page 5, line 33, strike "a project owner constructs".
Page 5, line 34, after "project" insert "is constructed or has been
constructed".
Page 5, line 39, strike "operation," and insert "operation or the
date of the office's certification of the unit under this section,
whichever is later,".
Page 5, line 42, after "regulation" insert "under subsection (a) or
the unit's clear standards under subsection (b), as applicable,".
Page 6, line 4, strike "(a)(3)," and insert "(a)(3) or (b)(3), as
applicable,".
Page 6, line 7, strike "(a)(3)." and insert "(a)(3) or (b)(3), as
applicable.".
Page 6, line 8, strike "(c)" and insert "(e)".
Page 6, line 13, strike "(b);" and insert "(d);".
Page 6, between lines 16 and 17, begin a new paragraph and insert:
"SECTION 6. IC 4-3-23.1-16, AS ADDED BY P.L.50-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 16. (a) The commercial solar and wind energy
ready communities incentive fund may be established by the office for
the purpose of:
(1) providing payments to commercial solar energy ready
communities under section 13(b) 13(d) of this chapter; and
(2) providing payments to wind energy ready communities under
EH 1278—LS 6966/DI 101 23
section 14(b) 14(d) of this chapter.
(b) The fund, if established, shall be administered by the office.
(c) The fund, if established, shall consist of:
(1) grants, gifts, and donations intended for deposit in the fund;
(2) federal funds;
(3) interest that accrues from money in the fund; and
(4) any amounts returned to the fund by units under section 13(b)
13(d) or 14(b) 14(d) of this chapter.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1278 as printed January 18, 2024.)
KOCH, Chairperson
Committee Vote: Yeas 8, Nays 1.
EH 1278—LS 6966/DI 101