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Senate Bill 0251


Senate Bill 0251

ARCHIVE (2011)

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DIGEST OF SB251 (Updated April 26, 2011 4:03 pm - DI 84)


Clean energy. Defines a "compliance project" as a project undertaken by an energy utility to comply with certain specified federally mandated requirements. Requires an energy utility that seeks to recover federally mandated costs incurred in connection with a compliance project to apply to the utility regulatory commission (IURC) for a certificate of public convenience and necessity for the compliance project. Sets forth certain factors that the IURC must consider in determining whether to grant a certificate. Specifies that if the IURC approves a proposed compliance project and the projected federally mandated costs associated with the project, the following apply: (1) 80% of the approved costs shall be recovered by the energy utility through a periodic retail rate adjustment mechanism. (2) 20% of the approved costs shall be deferred and recovered by the energy utility as part of the next general rate case filed by the energy utility with the IURC. (3) Actual costs exceeding the projected federally mandated costs of the approved compliance project by more than 25% shall require specific justification and approval before being authorized in the energy utility's next general rate case. Allows a nuclear energy production or generating facility to qualify for certain financial incentives available for clean energy projects if the facility: (1) supplies electricity to Indiana retail customers on July 1, 2011; and (2) is undergoing a comprehensive life cycle management project to enhance the safety and reliability of the facility while it is licensed to operate by the United States Nuclear Regulatory Commission. Requires the IURC to adopt rules to establish the voluntary clean energy portfolio standard program to provide incentives to participating electricity suppliers to obtain specified percentages of electricity from clean energy sources in accordance with two clean portfolio standard goals (CPS goals). Sets forth qualifying clean energy resources for purposes of the program. Amends the definition of "renewable energy resources" for purposes of the statute providing financial incentives for clean energy projects to consist of certain clean energy resources that qualify for the voluntary clean energy portfolio standard program. Requires the IURC to determine, before approving an application for participation in the program, that approving the application will not result in an increase to the electricity supplier's retail rates and charges above what could reasonably be expected if the application were not approved. Provides that in determining whether an electricity supplier has met a CPS goal, the IURC shall require that least 50% of the clean energy obtained by the electricity supplier to meet the energy requirements of its Indiana retail customers must originate from clean energy resources located in Indiana. Provides that a participating electricity supplier may own or purchase clean energy credits to meet a CPS goal. Beginning in 2014, requires: (1) a participating electricity supplier to report annually to the IURC on the supplier's efforts to meet the CPS goals; and (2) the IURC to include in its annual report to the regulatory flexibility committee a summary of the information reported by participating electricity suppliers. Amends the Indiana Code section concerning the state utility forecasting group's (SUFG) annual study of renewable energy resources as follows: (1) Requires the SUFG to study certain specified clean energy resources. (2) Provides that the IURC: (A) may direct the SUFG to study additional clean energy resources; and (B) shall direct the SUFG concerning the appropriate level of detail for the report prepared in connection with the study. (3) Removes the requirement that the SUFG evaluate potential renewable energy generation opportunities from biomass and algae production systems. Establishes procedures for the issuance by the department of natural resources (department) of a carbon dioxide transmission pipeline certificate of authority that allows the construction, operation, and maintenance of a pipeline and the use of eminent domain for those purposes. Requires the department to deposit in the oil and gas environmental fund (fund) fees collected in connection with an application for a certificate. Allows money in the fund to be appropriated for pipeline safety purposes. Requires an applicant for a certificate to have entered into a contract for the transportation of carbon dioxide with at least one producer of carbon dioxide that is located in Indiana. Provides that an applicant for a certificate must comply with federal and state safety regulations governing carbon dioxide transmission pipelines. Provides that an applicant for a certificate must have: (1) entered into an agreement with the IURC concerning the mitigation of agricultural impacts from the construction of the proposed pipeline; or (2) signed a statement indicating that the applicant agrees to use, in constructing the pipeline, certain guidelines adopted by the IURC's pipeline safety division. Limits a carbon dioxide transmission pipeline company to exercising the power of eminent domain only for a right of way or an easement. Provides that a carbon dioxide transmission pipeline company that exercises the power of eminent domain must: (1) compensate the property owner by making a payment to the owner equal to: (A) 125% of the fair market value of the interest acquired, if the interest involves agricultural land; or (B) 150% of the fair market value of the interest acquired, if interest involves a residence; and (2) pay to the property owner: (A) any damages determined under the statute governing eminent domain; and (B) any loss incurred in a trade or business; that are attributable to the exercise of eminent domain. Allows a carbon dioxide transmission pipeline company 180 days after the pipeline is completed to provide information to the department about the actual route of the pipeline. Provides that the provisions concerning carbon dioxide transmission pipelines expire July 1, 2021.
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