Author Archives Laura Arnold

Rep. Matt Pierce (D-Bloomington) introduced HB 1280 to maximize energy efficiency in buildings, to save taxpayers money and to make the state more energy independent. Debate on third reading at the microphone at 5:30 pm as it approached the dinner hour for most Hoosiers was limited. After Rep. Pierce briefly explained the bill, Rep. Sean Eberhart (R-Shelbyville) and Rep. William Friend (R-Macy) spoke against the bill stating that Indiana hardwood lumber would be harmed by HB 1280. Rep. Pierce responded to their opposition by pointing out that the bill allowed both LEEDS and Green Globes as an option for building construction. Rep. Pierce explained that using locally available materials such as Indiana hardwood lumber would accumulate points under the system.

DIGEST OF HB 1280 ENERGY EFFICIENT BUILDINGS. Requires a building or structure constructed, reconstructed, repaired, altered, or retrofitted under certain public works contracts entered into after December 31, 2008, to be designed with the goal of achieving the silver rating under the United States Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system, the Green Globes Two Globes level, or an equivalent standard under an equivalent rating system that is accredited by the American National Standards Institute. Provides that the certification requirement does not apply to a public works contract entered into by a school corporation. Provides that for state agency purchases, there is a 5% price preference for certain office equipment that is compliant with the United States Environmental Protection Agency Energy Star ratings. Allows the Indiana economic development corporation to adopt rules allowing the corporation to give priority to economic development projects that meet or surpass the standards of the leadership in energy and environmental design ratings systems developed by the U.S. Green Building Council or the Green Building Initiative.

Rep. Pierce will be speaking at the Indiana Building Green Symposium 2008
January 31 - February 01, 2008 - Indianapolis, Indiana.
See www.indianabuildinggreen.org.

See how your state legislator voted on HB 1280 at
http://www.in.gov/legislative/bills/2008/PDF/Hrollcal/0147.PDF.pdf

Rep. Ryan Dvorak (D-South Bend) introduced HB 1090 regarding the climate registry.

THE CLIMATE REGISTRY is a collaboration between states, provinces and tribes aimed at developing and managing a common greenhouse gas emissions reporting system with high integrity that is capable of supporting various greenhouse gas emission reporting and reduction policies for its member states and tribes and reporting entities. It will provide an accurate, complete, consistent, transparent and verified set of greenhouse gas emissions data from reporting entities, supported by a robust accounting and verification infrastructure.

For more details see http://www.theclimateregistry.org/.

DIGEST OF HB 1090 (Updated January 28, 2008 4:37 pm - DI 84)

Climate registry. Requires the state of Indiana to become a member of and participate in the climate registry concerning greenhouse gas emissions reporting and reduction. Requires the governor or the governor's designee to sign the climate registry's statement of principles and goals to become a member of the climate registry and deliver a copy of the signed statement to the climate registry before July 1, 2008.

Reread third time: failed for lack of constitutional majority Roll Call 78: Yeas 50, Nays 47. House rules require that bills receive a constitutional majority of 51 votes to pass third reading. If a bill does not receive 51 votes againt it as it was in this case it is also not defeated and therefore, the author can try again. Rep. Dvorak tried again today (01/30/08) around 11 AM and the bill passed 53 to 43.

To see how your state representative voted the first time see:
http://www.in.gov/legislative/bills/2008/PDF/Hrollcal/0078.PDF.pdf

To see how your state representative voted the second time see:
http://www.in.gov/legislative/bills/2008/PDF/Hrollcal/0130.PDF.pdf

If you are wondering who switched their votes, Reps. Neese, Soliday and Ulmer switched their votes from "No" to "Yes". Thank you for your support of the Climate Registry Reps. Neese, Soliday and Ulmer.

Earlier this week (01/28/08) a coal bill, HB 1117, was amended by a voice vote on second reading on the House floor to add a state income tax credit for equipment used to produce energy derived from the use of wind or from the use of anaerobic digesters. The amount of the credit is equal to ten percent (10%) of the purchase price. HB 1117 passed third reading 01/29/08 by a vote of 81 to 8. Again, the votes against this bill appear to be in opposition to the original subject of the bill and not the renewable tax credit language that was added on second reading. Rep. Dale Grubb (D-Covington) offered the amendment.

See how your state representative voted visit:
http://www.in.gov/legislative/bills/2008/PDF/Hrollcal/0082.PDF.pdf.

HB 1117 Amended Digest: Coal gasification and substitute natural gas. Provides that a taxpayer awarded a coal gasification technology investment tax credit may agree to use less than 100% Indiana coal in the qualifying coal gasification project and qualify for the credit if the taxpayer: (1) wishes to assign the tax credit; and (2) certifies to the Indiana economic development corporation that partial use of other coal is necessary to result in lower rates for Indiana retail utility customers. Changes the definition of "substitute natural gas" to include gas: (1) produced by a facility outside Indiana; and (2) converted from coal from a location other than the Illinois basin. Changes the definition of a "customer choice program" to include customers located in the service area of an electric utility. Provides that when substitute natural gas (SNG) purchase obligations are proportionally assigned due to a customer choice program, the assignee must meet the assignment requirements in the previously approved contract for purchase of the SNG. Provides that a taxpayer that purchases from an Indiana business certain equipment used to produce energy derived from the use of wind or from the use of anaerobic digestors is entitled to a credit against state income tax liability. Provides that the amount of the credit is 10% of the purchase price of the equipment.

The language of the amendment is as follows:
Chapter 32. Credit for Purchase of Qualified Equipment Sec. 1. As used in this chapter, "pass through entity" means: (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2); (2) a partnership; (3) a limited liability company; or (4) a limited liability partnership. Sec. 2. As used in this chapter, "qualified equipment" means equipment used to produce energy that is: (1) for retail or commercial use; and (2) derived from the use of wind or from the use of anaerobic digestors. Sec. 3. As used in this chapter, "state income tax liability" means a taxpayer's total tax liability that is incurred under IC 6-3-1 through IC 6-3-7, as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter. Sec. 4. (a) A taxpayer that purchases qualified equipment from an Indiana business (as certified by the Indiana economic development corporation) in a taxable year is entitled to a credit against state income tax liability for that taxable year. The amount of the credit is equal to ten percent (10%) of the purchase price of the qualified equipment. (b) A taxpayer may not claim a credit under this chapter for the purchase of qualified equipment if the taxpayer claims another state income tax credit or deduction for that same qualified equipment. Sec. 5. If a pass through entity is entitled to a credit under this chapter but does not have state income tax liability against which the tax credit may be applied, a shareholder, partner, or member of the pass through entity is entitled to a tax credit equal to: (1) the tax credit determined for the pass through entity for the taxable year; multiplied by (2) the percentage of the pass through entity's distributive income to which the shareholder, partner, or member is entitled. Sec. 6. (a) If the amount of the credit determined under this chapter for a taxpayer in a taxable year exceeds the taxpayer's state income tax liability for that taxable year, the taxpayer may carry the excess credit over for a period not to exceed the taxpayer's following five (5) taxable years. The amount of the credit carryover from a taxable year shall be reduced to the extent that the carryover is used by the taxpayer to obtain a credit under this chapter for any subsequent taxable year. (b) A taxpayer is not entitled to a carryback or a refund of any unused credit amount. Sec. 7. To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. Sec. 8. The department, with the assistance of the Indiana utility regulatory commission, shall adopt rules necessary to carry out this chapter.

To read the full text of the bill see: http://www.in.gov/legislative/bills/2008/PDF/HB/HB1117.2.pdf.

This bill now moves to the Indiana State Senate for further consideration and deliberation. The Senate Sponsors are Sen. Hershman and Sen. R. Young. The bill has already been assigned to the Senate Committee on Utilities and Regulatory Affairs chaired by Sen. Hershman who also introduced SB 224.

Although HB 1102 to establish a Renewable Electricity Standard (RES) and HB 1098 to revise the net metering and interconnection rules were defeated in the House Commerce, Energy and Utilities Committee last week, several other renewable energy proposals are still alive at the Indiana General Assembly. One of those bills is SB 224 introduced by Sen. Brandt Hershman (R-Monticello). SB 224 started out as a clean coal bill but was amended to add RES language in the Senate Utilities & Regulatory Affairs Committee chaired by Sen. Hershman. HB 1117 will be addressed in another post to this blog.

Last night (01/29/08) around 7:00 pm the Indiana Senate passed third reading on weaker RES language in SB 224. The bill passed 39 to 9. See the roll call at http://www.in.gov/legislative/bills/2008/PDF/Srollcal/0140.PDF.pdf. It appears that the votes against the bill were in opposition to the controversial utility tracker language and not the RES language.

Here is what the bill includes as renewable energy resources:

Sec. 8. (a) As used in this chapter, "renewable energy resources" means alternative sources of renewable energy, including the following: (1) Wind energy. (2) Solar energy. (3) Photovoltaic cells and panels. (4) Dedicated crops grown for energy production and used as: (A) the sole fuel; or (B) part of a co-firing application; in an energy generating facility. (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 (other than treated or painted lumber) including the following: (i) Wood residues. (ii) Forest thinnings. (iii) Mill residue wood. (iv) Waste from construction and demolition. (D) Animal wastes. (E) Aquatic plants. (6) Hydropower from existing dams. (7) Fuel cells. (8) Energy from waste to energy facilities that produce steam that is not used for the production of electricity. (9) Methane systems that convert waste products, including animal, food, and plant waste, into electricity. (10) Methane recovered from landfills or underground coal mines. (11) Ocean current or wave energy. (12) Any other sources that: (A) are included in any applicable federal renewable resource portfolio standard; or (B) become available through future developments in renewable energy technologies.

Here is the time table:

Two percent (2%) by December 31, 2011; four percent (4%) by December 31, 2011; and six percent (6%) of the electricity supplier's Indiana retail sales by December 31, 2020. An electricity supplier may not use an advanced energy resource to supply more than fifty percent (50%) of the electricity that the electricity supplier is required to supply.

Here’s the catch though. The definition of advanced energy resource is as follows:

Sec. 2. (a) As used in this chapter, "advanced energy resources" includes the following sources and programs for the production or conservation of electricity: (1) Combined heat and power systems that: (A) use natural gas or renewable energy resources as feedstock; and (B) achieve at least seventy percent (70%) overall efficiency. (2) Demand side management or energy efficiency programs that: (A) reduce electricity consumption; or (B) implement load management or demand response technologies that shift customers' electric load from periods of higher demand to periods of lower demand. (3) Waste coal. (4) Clean coal and energy projects (as defined in IC 8-1-8.8-2). (5) Other non carbon dioxide emitting or low carbon dioxide emitting electricity generating technologies, including integrated gasification combined cycle generation with the capability for carbon capture and sequestration through: (A) storage; or (B) enhanced oil recovery.

That means that 50% of the requirements under this proposed legislation can be met by burning more coal!

For all the full copy of SB 224 including the controversial utility tracker mechanism included in this bill see http://www.in.gov/legislative/bills/2008/PDF/SB/SB0224.2.pdf.

SB 224 now moves to the Indiana House. The House Sponsors include Representative Battles, Grubb, Lutz and Crooks. Watch this blog for more details as this proposed legislation moves during the second half of the 2008 session of the Indiana General Assembly.

Members of the Indiana Renewable Energy Association were deeply disappointed that on 01/24/08 members of the House Commerce, Energy and Utilities Committee voted 8 to 3 against HB 1102 to establish a Renewable Electricity Standard. The bill would have required electric utilities to obtain 10% of its power from renewable resources by 2018.

Voting in favor of HB 1102 were:
Chairman and Bill Author David Crooks (D-Washington) h63@in.gov;
Rep. Ryan Dvorak (D-South Bend) h8@in.gov; and
Rep. Sandra Blanton (D-Orleans) h62@in.gov.

We urge that you send a “thank you” to these state legislators as well as HB 1102 Co-author Rep. John Ulmer (R-Goshen) h49@in.gov.

Voting against HB 1102 were:
Rep. Kreg Battles (D-Vincennes) h64@in.gov;
Rep. Chester Dobis (D-Merrillville) h13@in.gov ;
Rep. Dan Stevenson (D-Highland) h11@in.gov;
Rep. Jack Lutz (R-Anderson) h35@in.gov;
Rep. Tim Neese (R-Elkhart) h48@in.gov;
Rep. Ed Soliday (R-Valparaiso) h4@in.gov;
Rep. Bob Behning (R-Indianapolis) h91@in.gov; and
Rep. David Frizzell (R-Indianapolis) h93@in.gov.

We urge that you express your disappointment with these state legislators for not supporting this renewable energy economic development proposal for our state.

Rep. Paul Robertson, (D-DePauw) was absent and not voting.