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CORRECTION: Sen. Beverly Gard Proposes Amendment #6 to SB 251 to strip “true” renewables from definition of clean energy February 17, 2011

Posted by Laura Arnold in 2011 Indiana General Assembly.
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Editor’s Note: Please accept my deepest apology. I jumped the gun and rendered an interpretation of Sen. Gard’s proposed amendment #6 to SB 251 in haste. Amendment #6 did delete the current definition of renewable energy BUT it also replaced it with another new definition of renewable energy in another section of the bill. In order to understand this it required looking at both the 6-page amendment and matching up the proposed changes to the 21-page February 8, 2011.

I suppose my only excuse is that I have been conditioned to expect the worse this session. An amended SB 251 will be on the Third Reading calendar in the Indiana State Senate this week.

To read the version of SB 251 the Indiana Senate will address can be found at Latest Printing (PDF) 

If you received or downloaded an earlier version of SB 251, you need to make sure you are now reading the Reprinted February 18, 2011 version of SB 251.

 To continue to watch the progress of this bill, please visit http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2011&request=getBill&docno=251

The saga goes on. Laura Ann Arnold

———————————————————————————————————–

An amendment was filed this morning (2/17/2011) on SB 251, the so-called Clean Energy Bill, authored by Sen. Beverly Gard,  Sen. Jim Merritt and Sen. Brandt Hershman, that would strip  “true” renewable energy resources such as wind, solar, biomass, hydro, etc. from the definition of “renewable energy resources”. It is hard to understand what the reason or rationale would be for this proposed change. I have not had a chance to read and really digest the rest of this 6-page proposed amendment.

It is possible I am not reading this correctly but I don’t think so. If I am correct then a really bad bill just became worse. I will try to continue to read and understand but I tought this was too important not to share with my blog readers right now.

The Indiana Senate is scheduled to go into session this afternoon at 1:30 pm EST, however, since both Senate Republicans and Senate Democrats were caucusing immediately prior to going into session it is doubtful they will start promptly at 1:30 pm.

Watch video from the Senate

Here is the text of the proposed amendment by Sen. Gard.

MADAM PRESIDENT:

    I move

that Senate Bill 251 be amended to read as follows:

<!– WP Comment

SOURCE: Page 2, line 6; (11)MO025106.2. –>     Page 2, line 6, delete “safety.” and insert “ safety, including integrity, additions, enhancements, and replacement projects related to safe and reliable operation.“.
    Page 4, line 9, after “from” insert “ or increase the efficiency of“.
    Page 5, line 33, after “energy” insert “ production or“.
    Page 5, line 33, strike “or coal gasification”.
    Page 7, delete lines 1 through 33, begin a new paragraph and insert:
<!– WP Comment
SOURCE: IC 8-1-8.8-10; (11)MO025106.11. –>     “SECTION 11. IC 8-1-8.8-10, AS AMENDED BY P.L.95-2010, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. (a) As used in this chapter “renewable energy resources” means alternative sources of renewable energy, including the following:
        (1) Energy from wind.
        (2) Solar energy.
        (3) Photovoltaic cells and panels.
        (4) Dedicated crops grown for energy production.
        (5) Organic waste biomass, including any of the following organic matter that is available on a renewable basis:
            (A) Agricultural crops.
            (B) Agricultural wastes and residues.
            (C) Wood and wood wastes, including the following:
                (i) Wood residues.
                (ii) Forest thinnings.
                (iii) Mill residue wood.
            (D) Animal wastes.
            (E) Animal byproducts.
            (F) Aquatic plants.
            (G) Algae.
        (6) Hydropower from existing dams.
        (7) Fuel cells.

        (8) Energy from waste to energy facilities.
        (9) Energy storage systems. a clean energy resource listed in IC 8-1-37-4(1) through (13).
    (b) Except for energy described in subsection (a)(8), from waste to energy facilities, the term does not include energy from the incinerations, burning, or heating of any of the following:
        (1) Tires.
        (2) General household, institutional, commercial, industrial lunchroom, office, or landscape waste.
    (c) The term excludes treated or painted lumber.”.
<!– WP Comment

SOURCE: Page 8, line 36; (11)MO025106.8. –>     Page 8, line 36, delete “financial incentives”.
    Page 11, line 11, after “37.” insert “ Voluntary“.
    Page 11, delete lines 18 through 25, begin a new line single block indented and insert:
        “ (1) represents one (1) megawatt hour of clean energy that satisfies the applicable conditions set forth in section 12(c)(2) of this chapter;“.
    Page 11, line 28, after “4.” insert “ (a)“.
    Page 12, delete lines 13 through 35, begin a new line block indented and insert:
        “ (12) Coal bed methane.
        (13) A source, technology, or program approved by the commission and designated as a clean energy resource by a rule adopted by the commission under IC 4-22-2.
        (14) Demand side management or energy efficiency initiatives that:
            (A) reduce electricity consumption; or
            (B) implement load management, demand response, or energy efficiency measures designed to shift customers’ electric loads from periods of higher demand to periods of lower demand;
        as a result of equipment installed, or customers enrolled, after January 1, 2010.
        (15) A clean energy project described in IC 8-1-8.8-2(1).
        (16) Nuclear energy.
        (17) Electricity that is:
            (A) generated by a customer owned distributed generation facility that is interconnected to the electricity supplier’s distribution system in accordance with the commission’s interconnection standards set forth in 170 IAC 4-4.3; and
            (B) supplied back to the electricity supplier for use in meeting the electricity supplier’s electricity demand requirements in accordance with the commission’s net metering rules set forth in 170 IAC 4-4.2.
        (18) Combined heat and power systems.
        (19) Electricity that is generated from natural gas at a facilityconstructed in Indiana after July 1, 2011, which displaces electricity generation from an existing coal fired generation facility.

during the base year.
        (2) CPS Goal Period II: For the six (6) calendar years beginning January 1, 2019, and ending December 31, 2024, an average of at least seven percent (7%) of the total electricity obtained by the participating electricity supplier to meet the energy requirements of its Indiana retail electric customers during the base year.
        (3) CPS Goal Period III: In the calendar year ending December 31, 2025, at least ten percent (10%) of the total electricity obtained by the participating electricity supplier to meet the energy requirements of its Indiana retail electric customers during the base year.


    Page 16, line 31, delete “(f)” and insert “ (g)“.
    Page 16, line 32, delete “4(18)” and insert “ 4(15) through 4(20)“.
    Page 16, line 35, delete “shall” and insert “ may“.
    Page 16, line 35, delete “the following”.
    Page 16, delete line 36.
    Page 16, line 37, delete “(1) A” and insert “ a“.
    Page 16, run in lines 35 through 37.
    Page 17, delete lines 1 through 9, begin a new line blocked left and insert:
authorized by the commission under this subsection may:
        (1) be different for each of the CPS goal periods identified in section 12(a) of this chapter, as the commission determines is appropriate; and
        (2) in the case of a particular participating electricity supplier, be based on the extent to which the participating electricity supplier met a particular CPS goal using clean energy resources listed in section 4(1) through 4(13) of this chapter.
“.
    Page 17, line 10, beginning with “The” begin a new line blocked left.
    Page 17, line 11, delete “subdivision” and insert “ subsection“.
    Page 17, line 12, delete “cumulative.” and insert “ cumulative and may not be authorized for a clean energy resource for which the commission has authorized an incentive under IC 8-1-8.8-11(a)(2).“.
    Page 17, delete lines 20 through 42, begin a new paragraph and insert:
    “ (b) If the commission approves an electricity supplier’s application under section 11(c) of this chapter, the commission shall permit the recovery, by means of a periodic rate adjustment mechanism, of incentives based on the following:
        (1) The sharing of achieved savings or as a percentage of costs.
        (2) Avoided costs resulting from achieving demand side management or energy efficiency targets.
“.
    Page 18, delete lines 1 through 3.
    Page 18, line 4, delete “(4)” and insert “ (3)“.
    Page 18, line 7, delete “(5)” and insert “ (4)“.
    Page 18, between lines 13 and 14, begin a new paragraph and insert:
    ”

(c) If the commission approved an electricity supplier’s application under section 11(c) of this chapter, the commission shall permit the recovery, by means of a periodic rate adjustment mechanism of all reasonable and necessary program costs incurred by a participating electricity supplier in:
        (1) constructing, operating, or maintaining facilities that generate clean energy that:
            (A) is used by the participating electricity supplier in itsefforts to meet a CPS goal set forth in section 12(a) of this chapter; and
            (B) meets the requirements set forth in section 12(c) of this chapter; or
        (2) otherwise generating or purchasing clean energy that is used by the participating electricity supplier in its efforts to meet a CPS goal set forth in section 12(a) of this chapter.
For purposes of this subsection and subsection (h)(1), “program costs” includes administrative costs, ancillary costs, capacity costs, costs associated with CECs, capital costs, depreciation costs, tax costs, and financing costs incurred in connection with an activity described in subdivision (1) or (2).

________________________________________
Senator GARD

“.
    Page 18, line 14, delete “(b)” and insert “ (d)“.
    Page 18, line 15, after “(a)” insert “ or periodic rate adjustment mechanisms established by the commission under subsection (b) or (c)“.
    Page 18, line 21, after “incentives” insert “ or periodic rate adjustment mechanisms“.
    Page 18, line 22, delete “(c)” and insert “ (e)“.
    Page 18, line 26, delete “(d)” and insert “ (f)“.
    Page 18, line 28, after “incentives” insert “ or periodic rate adjustment mechanisms“.
    Page 18, line 33, delete “(e)” and insert “ (g)“.
    Page 18, line 37, delete “(a)(1)” and insert “ (a)“.
    Page 19, line 2, delete “(f)” and insert “ (h)“.
    Page 19, line 6, delete “(a)(2)” and insert “ (c)“.
    Page 19, line 13, delete “Subject to subsection (c), beginning” and insert “ Beginning“.
    Page 20, line 22, delete “12(e)” and insert “ 12(f)“.
    Page 20, line 37, delete “Subject to subsection (c), beginning” and insert “ Beginning“.
    Page 21, delete lines 5 through 10.
    (Reference is to SB 251 as printed February 14, 2011.)
“.
    Page 12, line 36, delete “(19)” and insert “ (20)“.
    Page 12, between lines 37 and 38, begin a new paragraph and insert:
    “ (b) Except for energy described in subsection (a)(9), the term does not include energy from the incineration, burning, or heating of any of the following:
        (1) Tires.
        (2) General household, institutional, commercial, industrial, lunchroom, office, or landscape waste.
    (c) The term excludes treated or painted lumber.
“.
    Page 13, line 15, after “Indiana ” insert “ voluntary“.
    Page 13, line 25, after “Indiana” insert “ voluntary“.
    Page 13, line 38, after “incentives” insert “ and periodic rate adjustment mechanisms“.
    Page 14, line 24, delete “The commission shall approve an application submitted”.
    Page 14, line 25, delete “under subsection (a) if” and insert “ If“.
    Page 14, delete line 26, begin a new line single block indented and insert:
        “ (1) an application submitted under subsection (a) is complete and reasonably complies with the purpose of this chapter; and“.
    Page 14, line 29, delete “supplying” and insert “ obtaining“.
    Page 14, line 29, after “to” insert “ meet the energy requirements of“.
    Page 14, line 34, delete “chapter.” and insert “ chapter;
the commission shall approve the application. If, however, the commission determines that the application does not meet the requirements set forth in this subsection, the commission shall reject the application. The electricity supplier that submitted the application under subsection (a) bears the burden of proving to the commission that the application meets the requirements set forth in this subsection.
“.
    Page 14, line 35, delete “(b),” and insert “ (c),“.
    Page 14, line 37, delete “supply” and insert “ obtain“.
    Page 14, line 37, after “to” insert “ meet the energy requirements of“.
    Page 14, delete lines 40 through 42, begin a new line single block indented and insert:
        “ (1) CPS Goal Period I: For the six (6) calendar years beginning January 1, 2013, and ending December 31, 2018, an average of at least four percent (4%) of the total electricity obtained by the participating electricity supplier to meet the energy requirements of its Indiana retail electric customers “.
    Page 15, delete lines 1 through 19.
    Page 15, line 20, before “For” begin a new paragraph and insert “ (b)“.
    Page 15, line 20, delete “this subsection,” and insert “ subsection (a),“.
    Page 15, line 23, after “energy” insert “ as follows:
        (1) Subject to subdivision (2), for clean energy
“.
    Page 15, between lines 25 and 26, begin a new line single block indented and insert:
        “ (2) For clean energy that is generated by a facility located in Indiana from a clean energy resource listed in section 4(1) through 4(13) of this chapter by a factor of one and five tenths (1.5).“.
    Page 15, line 26, delete “(b)” and insert “ (c)“.
    Page 15, line 29, delete “(e),” and insert “ (f),“.
    Page 15, line 29, delete “supplied” and insert “ obtained“.
    Page 15, line 30, after “to” insert “ meet the energy requirements of“.
    Page 15, delete lines 33 through 42, begin a new line single block indented and insert:
        “ (2) is generated by a facility located in a control area that is part of a regional transmission organization of which an electricity supplier is a member.“.
    Page 16, delete lines 1 through 18, begin a new paragraph and insert:
    “ (d) An electricity supplier is not required to obtain clean energy to meet a particular CPS goal if the commission determines that the cost of clean energy resources available to the electricity supplier would result in an increase in the rates and charges of the electricity supplier that would not be just and reasonable.“.
    Page 16, line 19, delete “(d)” and insert “ (e)“.
    Page 16, line 22, delete “one (1) of”.
    Page 16, line 22, delete “(b)(2).” and insert “ (c)(2).“.
    Page 16, line 23, delete “(e)” and insert “ (f)“.

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Comments»

1. Gary Reese - February 17, 2011

The term “strip” hardly seems appropriate. This is more like rape!

The interests of the people of Indiana are clearly not those served by Sen. Beverly Gard.

When a woman is bought and payed for, their not called a Senator, another term seems in order.

2. Mark Frost - February 18, 2011

After reading the amendment and the original bill, it appears this amendment was designed to clean up the bill and make it simpler to read. The original bill had two places where “clean energy” was defined and this amendment gets rid of one so that there is only one place that it is defined. It clearly refers to the chapter 37 for that definition. Laws should never have something defined in two places but only in one. It also simplifies the language surrounding the goals which was originally very awkward.

The main real change that I see is that they increased the multiplier from 1.25 to 1.5 for “clean energy” produced in Indiana, which effectively waters down the goals somewhat, but also incentivizes production within the state.

I think that saying that it is removing any technologies except coal and nuclear is misleading and should be corrected .


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