Indiana 2025 Regular Session

Indiana House Bill HB1420 Compare Versions

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22 Introduced Version
33 HOUSE BILL No. 1420
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 8-1-2.
77 Synopsis: Sustainably sited generation projects. Amends the five
88 statutory attributes of Indiana electric utility service policy to include
99 sustainable siting of electric generation facility construction. Specifies
1010 attributes of a sustainably sited electric generation facility construction
1111 project.
1212 Effective: July 1, 2025.
1313 Culp
1414 January 13, 2025, read first time and referred to Committee on Utilities, Energy and
1515 Telecommunications.
1616 2025 IN 1420—LS 7321/DI 119 Introduced
1717 First Regular Session of the 124th General Assembly (2025)
1818 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
1919 Constitution) is being amended, the text of the existing provision will appear in this style type,
2020 additions will appear in this style type, and deletions will appear in this style type.
2121 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2222 provision adopted), the text of the new provision will appear in this style type. Also, the
2323 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2424 a new provision to the Indiana Code or the Indiana Constitution.
2525 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
2626 between statutes enacted by the 2024 Regular Session of the General Assembly.
2727 HOUSE BILL No. 1420
2828 A BILL FOR AN ACT to amend the Indiana Code concerning
2929 utilities.
3030 Be it enacted by the General Assembly of the State of Indiana:
3131 1 SECTION 1. IC 8-1-2-0.6, AS ADDED BY P.L.55-2023, SECTION
3232 2 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
3333 3 2025]: Sec. 0.6. The general assembly declares that it is the continuing
3434 4 policy of the state that decisions concerning Indiana's electric
3535 5 generation resource mix, energy infrastructure, and electric service
3636 6 ratemaking constructs must consider each of the following attributes of
3737 7 electric utility service:
3838 8 (1) Reliability, including:
3939 9 (A) the adequacy of electric utility service, including the
4040 10 ability of the electric system to supply the aggregate electrical
4141 11 demand and energy requirements of end use customers at all
4242 12 times, taking into account:
4343 13 (i) scheduled; and
4444 14 (ii) reasonably expected unscheduled;
4545 15 outages of system elements; and
4646 16 (B) the operating reliability of the electric system, including
4747 17 the ability of the electric system to withstand sudden
4848 2025 IN 1420—LS 7321/DI 119 2
4949 1 disturbances such as electric short circuits or unanticipated
5050 2 loss of system components.
5151 3 (2) Affordability, including ratemaking constructs that result in
5252 4 retail electric utility service that is affordable and competitive
5353 5 across residential, commercial, and industrial customer classes.
5454 6 (3) Resiliency, including the ability of the electric system or its
5555 7 components to:
5656 8 (A) adapt to changing conditions; and
5757 9 (B) withstand and rapidly recover from disruptions or
5858 10 off-nominal events.
5959 11 (4) Stability, including the ability of the electric system to:
6060 12 (A) maintain a state of equilibrium during:
6161 13 (i) normal and abnormal conditions; or
6262 14 (ii) disturbances; and
6363 15 (B) deliver a stable source of electricity, in which frequency
6464 16 and voltage are maintained within defined parameters,
6565 17 consistent with industry standards.
6666 18 (5) Environmental sustainability, including:
6767 19 (A) the impact of environmental regulations on the cost of
6868 20 providing electric utility service; and
6969 21 (B) demand from consumers for environmentally sustainable
7070 22 sources of electric generation; and
7171 23 (C) sustainably sited generation projects.
7272 24 SECTION 2. IC 8-1-2-1, AS AMENDED BY P.L.145-2015,
7373 25 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7474 26 JULY 1, 2025]: Sec. 1. (a) Except as provided in section 1.1 of this
7575 27 chapter, "public utility", as used in this chapter, means every
7676 28 corporation, company, partnership, limited liability company,
7777 29 individual, association of individuals, their lessees, trustees, or
7878 30 receivers appointed by a court, that may own, operate, manage, or
7979 31 control any plant or equipment within the state for the:
8080 32 (1) conveyance of telegraph or telephone messages;
8181 33 (2) production, transmission, delivery, or furnishing of heat, light,
8282 34 water, or power; or
8383 35 (3) collection, treatment, purification, and disposal in a sanitary
8484 36 manner of liquid and solid waste, sewage, night soil, and
8585 37 industrial waste.
8686 38 The term does not include a municipality that may acquire, own, or
8787 39 operate any of the foregoing facilities.
8888 40 (b) "Municipal council", as used in this chapter, means the
8989 41 legislative body of any town or city in Indiana wherein the property of
9090 42 the public utility or any part thereof is located.
9191 2025 IN 1420—LS 7321/DI 119 3
9292 1 (c) "Municipality", as used in this chapter, means any city or town
9393 2 of Indiana.
9494 3 (d) "Rate", as used in this chapter, means every individual or joint
9595 4 rate, fare, toll, charge, rental, or other compensation of any utility or
9696 5 any two (2) or more such individual or joint rates, fares, tolls, charges,
9797 6 rentals, or other compensation of any utility or any schedule or tariff
9898 7 thereof, but nothing in this subsection shall give the commission any
9999 8 control, jurisdiction, or authority over the rate charged by a municipally
100100 9 owned utility except as in this chapter expressly provided.
101101 10 (e) "Service" is used in this chapter in its broadest and most
102102 11 inclusive sense and includes not only the use or accommodation
103103 12 afforded consumers or patrons but also any product or commodity
104104 13 furnished by any public or other utility and the plant, equipment,
105105 14 apparatus, appliances, property, and facility employed by any public or
106106 15 other utility in performing any service or in furnishing any product or
107107 16 commodity and devoted to the purposes in which such public or other
108108 17 utility is engaged and to the use and accommodation of the public.
109109 18 (f) "Commission", as used in this chapter, means the commission
110110 19 created by IC 8-1-1-2.
111111 20 (g) "Utility", as used in this chapter, means every plant or equipment
112112 21 within the state used for:
113113 22 (1) the conveyance of telegraph and telephone messages;
114114 23 (2) the production, transmission, delivery, or furnishing of heat,
115115 24 light, water, or power, either directly or indirectly to the public;
116116 25 or
117117 26 (3) collection, treatment, purification, and disposal in a sanitary
118118 27 manner of liquid and solid waste, sewage, night soil, and
119119 28 industrial waste.
120120 29 The term does not include a municipality that may acquire, own, or
121121 30 operate facilities for the collection, treatment, purification, and disposal
122122 31 in a sanitary manner of liquid and solid waste, sewage, night soil, and
123123 32 industrial waste. A warehouse owned or operated by any person, firm,
124124 33 limited liability company, or corporation engaged in the business of
125125 34 operating a warehouse business for the storage of used household
126126 35 goods is not a public utility within the meaning of this chapter.
127127 36 (h) "Municipally owned utility", as used in this chapter, includes
128128 37 every utility owned or operated by a municipality.
129129 38 (i) "Indeterminate permit", as used in this chapter, means every
130130 39 grant, directly or indirectly from the state, to any corporation, company,
131131 40 partnership, limited liability company, individual, association of
132132 41 individuals, their lessees, trustees, or receivers appointed by a court, of
133133 42 power, right, or privilege to own, operate, manage, or control any plant
134134 2025 IN 1420—LS 7321/DI 119 4
135135 1 or equipment, or any part of a plant or equipment, within this state, for
136136 2 the:
137137 3 (1) production, transmission, delivery, or furnishing of heat, light,
138138 4 water, or power, either directly or indirectly to or for the public;
139139 5 (2) collection, treatment, purification, and disposal in a sanitary
140140 6 manner of liquid and solid waste, sewage, night soil, and
141141 7 industrial waste; or
142142 8 (3) furnishing of facilities for the transmission of intelligence by
143143 9 electricity between points within this state;
144144 10 which shall continue in force until such time as the municipality shall
145145 11 exercise its right to purchase, condemn, or otherwise acquire the
146146 12 property of such public utility, as provided in this chapter, or until it
147147 13 shall be otherwise terminated according to law.
148148 14 (j) "Communications service provider", as used in this chapter, has
149149 15 the meaning set forth in IC 8-1-2.6-13.
150150 16 (k) "Sustainably sited generation project", as used in this
151151 17 chapter, means a project for construction of an electric generation
152152 18 facility that takes into consideration the community, economic, and
153153 19 environmental effects of the project, including through:
154154 20 (1) avoiding and mitigating direct effects of the project on the
155155 21 environment and natural resources;
156156 22 (2) community outreach in the area in which the project will
157157 23 be conducted, including:
158158 24 (A) holding public meetings in which the proposed benefits
159159 25 of the project are explained before construction begins;
160160 26 (B) engaging in community education initiatives; and
161161 27 (C) verifying to the community the project's compliance
162162 28 with applicable state and federal environmental laws;
163163 29 (3) incorporation of dual use planning that co-locates
164164 30 renewable energy or other infrastructure with natural
165165 31 resources or agricultural land;
166166 32 (4) prioritizing use of developed land and avoiding use of
167167 33 ecologically sensitive and natural areas;
168168 34 (5) avoiding siting on soil identified by the United States
169169 35 Department of Agriculture's Natural Resources Conservation
170170 36 Service as an Indiana soil of statewide significance; and
171171 37 (6) siting within the boundaries of existing electric
172172 38 transmission lines.
173173 2025 IN 1420—LS 7321/DI 119