1 | 1 | | |
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2 | 2 | | Introduced Version |
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3 | 3 | | HOUSE BILL No. 1420 |
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4 | 4 | | _____ |
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5 | 5 | | DIGEST OF INTRODUCED BILL |
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6 | 6 | | Citations Affected: IC 8-1-2. |
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7 | 7 | | Synopsis: Sustainably sited generation projects. Amends the five |
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8 | 8 | | statutory attributes of Indiana electric utility service policy to include |
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9 | 9 | | sustainable siting of electric generation facility construction. Specifies |
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10 | 10 | | attributes of a sustainably sited electric generation facility construction |
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11 | 11 | | project. |
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12 | 12 | | Effective: July 1, 2025. |
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13 | 13 | | Culp |
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14 | 14 | | January 13, 2025, read first time and referred to Committee on Utilities, Energy and |
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15 | 15 | | Telecommunications. |
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16 | 16 | | 2025 IN 1420—LS 7321/DI 119 Introduced |
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17 | 17 | | First Regular Session of the 124th General Assembly (2025) |
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18 | 18 | | PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana |
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19 | 19 | | Constitution) is being amended, the text of the existing provision will appear in this style type, |
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20 | 20 | | additions will appear in this style type, and deletions will appear in this style type. |
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21 | 21 | | Additions: Whenever a new statutory provision is being enacted (or a new constitutional |
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22 | 22 | | provision adopted), the text of the new provision will appear in this style type. Also, the |
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23 | 23 | | word NEW will appear in that style type in the introductory clause of each SECTION that adds |
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24 | 24 | | a new provision to the Indiana Code or the Indiana Constitution. |
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25 | 25 | | Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts |
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26 | 26 | | between statutes enacted by the 2024 Regular Session of the General Assembly. |
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27 | 27 | | HOUSE BILL No. 1420 |
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28 | 28 | | A BILL FOR AN ACT to amend the Indiana Code concerning |
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29 | 29 | | utilities. |
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30 | 30 | | Be it enacted by the General Assembly of the State of Indiana: |
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31 | 31 | | 1 SECTION 1. IC 8-1-2-0.6, AS ADDED BY P.L.55-2023, SECTION |
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32 | 32 | | 2 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, |
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33 | 33 | | 3 2025]: Sec. 0.6. The general assembly declares that it is the continuing |
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34 | 34 | | 4 policy of the state that decisions concerning Indiana's electric |
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35 | 35 | | 5 generation resource mix, energy infrastructure, and electric service |
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36 | 36 | | 6 ratemaking constructs must consider each of the following attributes of |
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37 | 37 | | 7 electric utility service: |
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38 | 38 | | 8 (1) Reliability, including: |
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39 | 39 | | 9 (A) the adequacy of electric utility service, including the |
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40 | 40 | | 10 ability of the electric system to supply the aggregate electrical |
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41 | 41 | | 11 demand and energy requirements of end use customers at all |
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42 | 42 | | 12 times, taking into account: |
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43 | 43 | | 13 (i) scheduled; and |
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44 | 44 | | 14 (ii) reasonably expected unscheduled; |
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45 | 45 | | 15 outages of system elements; and |
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46 | 46 | | 16 (B) the operating reliability of the electric system, including |
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47 | 47 | | 17 the ability of the electric system to withstand sudden |
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48 | 48 | | 2025 IN 1420—LS 7321/DI 119 2 |
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49 | 49 | | 1 disturbances such as electric short circuits or unanticipated |
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50 | 50 | | 2 loss of system components. |
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51 | 51 | | 3 (2) Affordability, including ratemaking constructs that result in |
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52 | 52 | | 4 retail electric utility service that is affordable and competitive |
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53 | 53 | | 5 across residential, commercial, and industrial customer classes. |
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54 | 54 | | 6 (3) Resiliency, including the ability of the electric system or its |
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55 | 55 | | 7 components to: |
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56 | 56 | | 8 (A) adapt to changing conditions; and |
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57 | 57 | | 9 (B) withstand and rapidly recover from disruptions or |
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58 | 58 | | 10 off-nominal events. |
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59 | 59 | | 11 (4) Stability, including the ability of the electric system to: |
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60 | 60 | | 12 (A) maintain a state of equilibrium during: |
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61 | 61 | | 13 (i) normal and abnormal conditions; or |
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62 | 62 | | 14 (ii) disturbances; and |
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63 | 63 | | 15 (B) deliver a stable source of electricity, in which frequency |
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64 | 64 | | 16 and voltage are maintained within defined parameters, |
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65 | 65 | | 17 consistent with industry standards. |
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66 | 66 | | 18 (5) Environmental sustainability, including: |
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67 | 67 | | 19 (A) the impact of environmental regulations on the cost of |
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68 | 68 | | 20 providing electric utility service; and |
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69 | 69 | | 21 (B) demand from consumers for environmentally sustainable |
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70 | 70 | | 22 sources of electric generation; and |
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71 | 71 | | 23 (C) sustainably sited generation projects. |
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72 | 72 | | 24 SECTION 2. IC 8-1-2-1, AS AMENDED BY P.L.145-2015, |
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73 | 73 | | 25 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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74 | 74 | | 26 JULY 1, 2025]: Sec. 1. (a) Except as provided in section 1.1 of this |
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75 | 75 | | 27 chapter, "public utility", as used in this chapter, means every |
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76 | 76 | | 28 corporation, company, partnership, limited liability company, |
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77 | 77 | | 29 individual, association of individuals, their lessees, trustees, or |
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78 | 78 | | 30 receivers appointed by a court, that may own, operate, manage, or |
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79 | 79 | | 31 control any plant or equipment within the state for the: |
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80 | 80 | | 32 (1) conveyance of telegraph or telephone messages; |
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81 | 81 | | 33 (2) production, transmission, delivery, or furnishing of heat, light, |
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82 | 82 | | 34 water, or power; or |
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83 | 83 | | 35 (3) collection, treatment, purification, and disposal in a sanitary |
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84 | 84 | | 36 manner of liquid and solid waste, sewage, night soil, and |
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85 | 85 | | 37 industrial waste. |
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86 | 86 | | 38 The term does not include a municipality that may acquire, own, or |
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87 | 87 | | 39 operate any of the foregoing facilities. |
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88 | 88 | | 40 (b) "Municipal council", as used in this chapter, means the |
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89 | 89 | | 41 legislative body of any town or city in Indiana wherein the property of |
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90 | 90 | | 42 the public utility or any part thereof is located. |
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91 | 91 | | 2025 IN 1420—LS 7321/DI 119 3 |
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92 | 92 | | 1 (c) "Municipality", as used in this chapter, means any city or town |
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93 | 93 | | 2 of Indiana. |
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94 | 94 | | 3 (d) "Rate", as used in this chapter, means every individual or joint |
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95 | 95 | | 4 rate, fare, toll, charge, rental, or other compensation of any utility or |
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96 | 96 | | 5 any two (2) or more such individual or joint rates, fares, tolls, charges, |
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97 | 97 | | 6 rentals, or other compensation of any utility or any schedule or tariff |
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98 | 98 | | 7 thereof, but nothing in this subsection shall give the commission any |
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99 | 99 | | 8 control, jurisdiction, or authority over the rate charged by a municipally |
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100 | 100 | | 9 owned utility except as in this chapter expressly provided. |
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101 | 101 | | 10 (e) "Service" is used in this chapter in its broadest and most |
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102 | 102 | | 11 inclusive sense and includes not only the use or accommodation |
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103 | 103 | | 12 afforded consumers or patrons but also any product or commodity |
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104 | 104 | | 13 furnished by any public or other utility and the plant, equipment, |
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105 | 105 | | 14 apparatus, appliances, property, and facility employed by any public or |
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106 | 106 | | 15 other utility in performing any service or in furnishing any product or |
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107 | 107 | | 16 commodity and devoted to the purposes in which such public or other |
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108 | 108 | | 17 utility is engaged and to the use and accommodation of the public. |
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109 | 109 | | 18 (f) "Commission", as used in this chapter, means the commission |
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110 | 110 | | 19 created by IC 8-1-1-2. |
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111 | 111 | | 20 (g) "Utility", as used in this chapter, means every plant or equipment |
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112 | 112 | | 21 within the state used for: |
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113 | 113 | | 22 (1) the conveyance of telegraph and telephone messages; |
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114 | 114 | | 23 (2) the production, transmission, delivery, or furnishing of heat, |
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115 | 115 | | 24 light, water, or power, either directly or indirectly to the public; |
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116 | 116 | | 25 or |
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117 | 117 | | 26 (3) collection, treatment, purification, and disposal in a sanitary |
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118 | 118 | | 27 manner of liquid and solid waste, sewage, night soil, and |
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119 | 119 | | 28 industrial waste. |
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120 | 120 | | 29 The term does not include a municipality that may acquire, own, or |
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121 | 121 | | 30 operate facilities for the collection, treatment, purification, and disposal |
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122 | 122 | | 31 in a sanitary manner of liquid and solid waste, sewage, night soil, and |
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123 | 123 | | 32 industrial waste. A warehouse owned or operated by any person, firm, |
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124 | 124 | | 33 limited liability company, or corporation engaged in the business of |
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125 | 125 | | 34 operating a warehouse business for the storage of used household |
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126 | 126 | | 35 goods is not a public utility within the meaning of this chapter. |
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127 | 127 | | 36 (h) "Municipally owned utility", as used in this chapter, includes |
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128 | 128 | | 37 every utility owned or operated by a municipality. |
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129 | 129 | | 38 (i) "Indeterminate permit", as used in this chapter, means every |
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130 | 130 | | 39 grant, directly or indirectly from the state, to any corporation, company, |
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131 | 131 | | 40 partnership, limited liability company, individual, association of |
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132 | 132 | | 41 individuals, their lessees, trustees, or receivers appointed by a court, of |
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133 | 133 | | 42 power, right, or privilege to own, operate, manage, or control any plant |
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134 | 134 | | 2025 IN 1420—LS 7321/DI 119 4 |
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135 | 135 | | 1 or equipment, or any part of a plant or equipment, within this state, for |
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136 | 136 | | 2 the: |
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137 | 137 | | 3 (1) production, transmission, delivery, or furnishing of heat, light, |
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138 | 138 | | 4 water, or power, either directly or indirectly to or for the public; |
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139 | 139 | | 5 (2) collection, treatment, purification, and disposal in a sanitary |
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140 | 140 | | 6 manner of liquid and solid waste, sewage, night soil, and |
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141 | 141 | | 7 industrial waste; or |
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142 | 142 | | 8 (3) furnishing of facilities for the transmission of intelligence by |
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143 | 143 | | 9 electricity between points within this state; |
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144 | 144 | | 10 which shall continue in force until such time as the municipality shall |
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145 | 145 | | 11 exercise its right to purchase, condemn, or otherwise acquire the |
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146 | 146 | | 12 property of such public utility, as provided in this chapter, or until it |
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147 | 147 | | 13 shall be otherwise terminated according to law. |
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148 | 148 | | 14 (j) "Communications service provider", as used in this chapter, has |
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149 | 149 | | 15 the meaning set forth in IC 8-1-2.6-13. |
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150 | 150 | | 16 (k) "Sustainably sited generation project", as used in this |
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151 | 151 | | 17 chapter, means a project for construction of an electric generation |
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152 | 152 | | 18 facility that takes into consideration the community, economic, and |
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153 | 153 | | 19 environmental effects of the project, including through: |
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154 | 154 | | 20 (1) avoiding and mitigating direct effects of the project on the |
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155 | 155 | | 21 environment and natural resources; |
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156 | 156 | | 22 (2) community outreach in the area in which the project will |
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157 | 157 | | 23 be conducted, including: |
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158 | 158 | | 24 (A) holding public meetings in which the proposed benefits |
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159 | 159 | | 25 of the project are explained before construction begins; |
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160 | 160 | | 26 (B) engaging in community education initiatives; and |
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161 | 161 | | 27 (C) verifying to the community the project's compliance |
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162 | 162 | | 28 with applicable state and federal environmental laws; |
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163 | 163 | | 29 (3) incorporation of dual use planning that co-locates |
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164 | 164 | | 30 renewable energy or other infrastructure with natural |
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165 | 165 | | 31 resources or agricultural land; |
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166 | 166 | | 32 (4) prioritizing use of developed land and avoiding use of |
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167 | 167 | | 33 ecologically sensitive and natural areas; |
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168 | 168 | | 34 (5) avoiding siting on soil identified by the United States |
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169 | 169 | | 35 Department of Agriculture's Natural Resources Conservation |
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170 | 170 | | 36 Service as an Indiana soil of statewide significance; and |
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171 | 171 | | 37 (6) siting within the boundaries of existing electric |
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172 | 172 | | 38 transmission lines. |
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173 | 173 | | 2025 IN 1420—LS 7321/DI 119 |
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