"Alive... It's alive!..... IT'S ALIVE!!" RES that is!

This morning (02/14/08) in a narrow 6-5 vote in the Senate Utilities & Regulatory Affairs Committee, HB 1117 was amended with a strip and insert amendment. The amendment removed the provisions added by Rep. Dale Grubb (D-Covington) that provided a tax credit for purchases from an Indiana business of certain equipment used to produce energy derived from the use of wind or from the use of anaerobic digesters. HB 1117 Amendment #2 then adds the contents of SB 224 as reprinted January 29, 2008.

Sen. Hershman explained that basically HB 1117 contained the same language as SB 223 and SB 223 was just voted out of the House Commerce Energy and Utilities Committee earlier that morning. He also noted that thus far SB 224 had not been scheduled for a committee hearing in the House; therefore, he was amending HB 1117 and indicated this was the “last gasp for RES” this session. RES refers to legislation to establish a Renewable Electricity Standard that died earlier in the session in the House.

Brief testimony was taken on the amended version of the bill. Jewell DuBonis with Lewis & Kappes representing the Indiana Industrial Energy Consumers (INDIEC) stated they were against the trackers in the amendment but they had “no position on the renewables language”.

Paul Chase representing the Citizens Action Coalition (CAC) stated “We are in opposition to the amendment. We oppose the whole thing. This is an improper approach to RES. With the low standards for RES, it is basically business as usual.” Chase added that the trackers in the amendment are unnecessary and they will add a tremendous additional cost to consumers.

Committee Chairman Sen. Hershman asked Chase to speculate about the future of the bill and suggested that when HB 1117 returns to the House it would likely go to a Conference Committee. Chase responded by saying that the amendment did not do enough to kick start the renewable market. Sen. Hershman then suggested “CAC does not want to continue the RES discussion?” Chase responded by saying, “It’s not about coal. We shouldn’t have to swallow coal.”

Terrence Black with Green Way Supply and a Founding Member of the Indiana Renewable Energy Association said that his company recently received 162 wind energy generation inquiries with half farmers and business owners. Black simply asked the committee to support alternative energy generation.

Tim Maloney representing the Hoosier Environmental Council (HEC) stated “HEC wants to see a clean RES proposal.”

Ed Simcox representing the Indiana Energy Association whose members are the investor-owned utility companies made reference to renewables language in the last session that was more ambitious. Simcox portrayed wind as a supplement but not as a replacement for coal-fired generation. He referred to solar as “off the charts” as compared to the price of existing base load coal-fired electricity generation. He concluded that the meager 6% goal in the amendment of which 3% can be met with coal technology as a “reasonable start to get Indiana in the game given what other states are doing.”

In conclusion before the committee voted, Sen. Hershman said of HB 1117, “It will be subject to negotiation but there will be no negotiation if there is no bill.”

Two roll call votes were taken; first on the amendment itself and then on the bill as amended, however, the votes and the outcome were the same. With a vote of 6 to 5, HB 1117 now moves on to second reading on the Senate floor.

The vote tally was as follows:

Voting “NO” were Senators Errington, Breaux, Rogers, Tallian, and Landske.

Voting “YES” were Senators Mishler, Gard, Charbonneau, Kruse, Merritt and Hershman.

For an amended version of the bill see: http://www.in.gov/legislative/bills/2008/PDF/EH/EH1117.1.pdf

Dr. Frankenstein said: "Alive... It's alive!..... IT'S ALIVE!!"

SB 224 With Weak RES Passes Indiana Senate 39 to 9

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.