LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6966 NOTE PREPARED: Feb 29, 2024
BILL NUMBER: HB 1278 BILL AMENDED: Feb 22, 2024
SUBJECT: IURC and Office of Energy Development Matters.
FIRST AUTHOR: Rep. Soliday BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Koch
FUNDS AFFECTED:XGENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: This bill repeals the Indiana Code provisions concerning the following obsolete
programs and funds administered by the Indiana Office of Energy Development (OED):
(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.
The bill also makes conforming amendments to other sections of the Indiana Code that reference the repealed
provisions.
The bill repeals and relocates a provision that authorizes the OED to establish and administer a revolving
loan program to make low interest loans for energy efficiency or recycling market development projects from
the chapter governing the Indiana Recycling Market Development Board to the chapter governing the OED.
The bill also removes language authorizing the OED to consult with the Board in establishing and
administering the program.
It provides that the Commercial Solar and Wind Energy Ready Communities Development Center may make
a reasonable determination to certify a unit if the unit's commercial solar regulation or wind power regulation
does not: (1) materially differ from applicable industry or regulatory standards; (2) otherwise materially
affect the ability of a project owner to develop a commercial solar project or a wind power project in the unit;
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decommissioning of commercial solar or wind power systems and the unit’s clear standards meet specified
requirements.
The bill also amends the Indiana Code section concerning a rate case in which a utility seeks an increase in
revenues exceeding $2.5 M, 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.)
The bill makes a corresponding change to the statute concerning rural electric membership corporations. It
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.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill could increase the workload of the Office of Energy
Development’s (OED) Commercial Solar and Wind Energy Ready Communities Development Center to
certify additional unit’s power regulation under certain conditions. Increases in workload are expected to be
accomplished within existing and resource levels.
Additional Information - The Commercial Solar and Wind Energy Ready Communities Development Center
was established by SEA 390-2023. The Center provides information regarding wind and solar energy
development, as well as administers a certification program for communities to be designated as a
Community Solar Energy Ready Community, a Wind Energy Ready Community, or both.
The bill also repeals other programs under the OED that are no longer in operation.
Explanation of State Revenues: The bill repeals funds that are no longer used by the OED. These include
the Indiana Coal Research Grant Fund and the Alternative Energy Incentive Fund. These funds do not have
balances, therefore repealing these funds is expected to have no impact.
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: OED; IURC; Indiana Recycling Market Development Board.
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Bill Brumbach, 317-232-9559.
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