SB 340 has been on the House Second Reading Calendar for a few days now, however, the House sponsor Rep. Eric Koch (R-Bedford) has not called the bill down. Second reading is where any member of the House can offer an amendment to the proposed legislation before it is voted on final passage.
Thus far eight (8) proposed amendments have been filed, however, it is widely speculated that House Sponsor Rep. Eric Koch will also file a proposed second reading amendment before he calls the bill down.
To learn more about why Demand Side Management (DSM) programs for electric utilities are important, see this fact sheet from the Midwest Energy Efficiency Alliance.
Indiana MEEA SB340 Handout--2-18-14 (excerpt from this handout below)
Indiana Industrial Energy Efficiency Policy Impacts
Indiana’s economy is energy intensive. In 2012, Indiana ranked 10th highest among state electricity consumption (kWh) per dollar of state gross domestic product. The industrial sector, in 2011, consumed 46% of all energy used in the state. Economic growth in Indiana depends upon managing this energy demand.
Demand-side management (DSM) programs:
o Save participating companies money
o Benefit all ratepayers by reducing the need to rely on costly electricity generation during peak times and avoiding the need to build additional power plants and transmission facilities
o Create high quality jobs across a range of manufacturing and service industries
o Reduce Indiana’s reliance on imported fuels: Indiana currently imports 99% of the natural gas, oil, and petroleum used in Indiana, and 41% of the coal. Energy efficiency funds are invested directly into Indiana and reduce the amount of fuels imported from out of state.
The House Calendar for Monday, February 24 can be found at http://iga.in.gov/legislative/2014/calendars/house/24/.
The House is scheduled to convene Monday starting at 1:30 pm.
We urge that you follow IndianaDG on Twitter to learn when SB 340 might be called down on second reading and then watch the debate on-line at http://iga.in.gov/legislative/2014/session/home/.
IndianaDG asks that you contact your House member and ask them to:
- support Amendments 1, 2, 3 and 4 in Green ; and
- oppose Amendments 5, 6. 7 and 8 in Red.
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Page 1, line 3, delete "(a) For purposes of this section, "DSM order".
2 Page 1 delete lines 4 through 16.
3 Page 2, delete lines 1 through 41.
4 Page 2, line 42, delete "(h)".
5 Page 1, run in line 3 through page 2, line 42.
6 Page 3, between lines 29 and 30, begin a new line block indented
7 and insert:
8 "(9) Estimated fuel savings as a result of energy efficiency
9 programs.
10 (10) Financial savings to all customers as a result of energy
11 efficiency programs.
12 (11) Quantifiable system wide benefits as a result of energy
13 efficiency programs.
14 (12) Reduced energy consumption by all customers as a result
15 of energy efficiency programs.".
1 Page 3, line 30, delete "(9)" and insert "(13)".
2 Page 3, line 32, delete "subsection" and insert "section".
(Reference is to ESB 340 as printed February 14, 2014.)
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Page 2, between lines 3 and 4, begin a new paragraph and insert:
2 "(d) For purposes of this section, "self-directed energy efficiency
3 program" means a program that is:
4 (1) developed or sponsored by an industrial customer or a
5 third party administrator on behalf of an industrial customer;
6 and
7 (2) designed to implement energy efficiency improvements (as
8 defined in 170 IAC 4-8-1(h)) for the industrial customer.
9 The term includes energy efficiency programs or other measures
10 implemented or undertaken after June 30, 2009, by an industrial
11 customer that are substantially similar to energy efficiency
12 programs, targets, or goals established or approved by the
13 commission in a DSM order.".
14 Page 2, line 4, delete "(d)" and insert "(e)".
15 Page 2, line 9, delete "(e)," and insert "(f),".
16 Page 2, line 22, delete "(e)" and insert "(f)".
17 Page 2, line 23, delete "may subsequently opt to" and insert "shall".
18 Page 2, line 24, delete "the same or a different" and insert "a
19 self-directed".
20 Page 2, line 24, delete "The industrial", begin a new paragraph and
21 insert:
22 "(g) The commission shall adopt rules under IC 4-22-2 or
1 guidelines to assist industrial customers in establishing and
2 complying with self-directed energy efficiency programs. The rules
3 or guidelines must include the following:
4 (1) A requirement that an industrial customer invest in its
5 self-directed energy efficiency program in an amount equal to
6 or greater than the amount the industrial customer paid to the
7 public utility for the energy efficiency program from which it
8 opted out.
9 (2) A requirement that an industrial customer establish
10 energy efficiency targets or goals to be achieved through the
11 self-directed energy efficiency program.
12 (3) Annual reporting requirements by the industrial customer
13 to the commission to demonstrate compliance with the
14 self-directed energy efficiency program.
15 (4) Criteria for third party administrators of self-directed
16 energy efficiency programs.".
17 Page 2, delete lines 25 through 32.
18 Page 2, line 33, delete "(f)" and insert "(h)".
19 Page 2, line 36, delete "(d)." and insert "(e)."
20 Page 2, line 37, delete "(g) The" and insert "(i) In addition to the
21 rules described in subsection (g), the".
22 Page 2, line 42, delete "(h)" and insert "(j)".
(Reference is to ESB 340 as printed February 14, 2014.)
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Page 3, delete lines 26 through 29, begin a new line block indented
2 and insert:
3 "(8) Methods by which the cost effectiveness and long term
4 resource value of energy efficiency programs may be
5 measured to assess the effect on rates and charges for all
6 customers.".
(Reference is to ESB 340 as printed February 14, 2014.)
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Page 2, delete lines 1 through 3, begin a new paragraph and insert:
2 "(c) The commission shall adopt rules under IC 4-22-2 to
3 determine whether a person is an industrial customer for purposes
4 of this section. The rules must include the following:
5 (1) A minimum annual usage or demand requirement.
6 (2) A determination whether the person may aggregate usage
7 or demand from more than one (1) site.
8 (3) Provisions establishing the basis by which a person may be
9 designated as an industrial customer, including applicable
10 Standard Industrial Classification (SIC) codes.".
11 Page 2, line 37, delete "The" and insert "In addition to the rules
12 described in subsection (c), the".
(Reference is to ESB 340 as printed February 14, 2014.)
340.5 filed by Rep. Heath VanNatter 340.5 VanNatter Amend
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Page 3, after line 32, begin a new paragraph and insert:
2 "(i) A third party administrator that sponsors an energy
3 efficiency program may not provide a financial or other incentive
4 through a community outreach partnership to a nonprofit
5 organization that:
6 (1) is exempt from federal income taxation under Section
7 501(c)(3) or 501(c)(4) of the Internal Revenue Code; and
8 (2) is, or is represented by, a lobbyist (as defined in
9 IC 2-7-1-10) before a legislative body (as defined in
10 IC 2-7-1-7.2).".
(Reference is to ESB 340 as printed February 14, 2014.)
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Page 3, delete lines 26 through 29, begin a new line block indented
2 and insert:
3 "(8) Methods by which the cost effectiveness and long term
4 resource value of energy efficiency programs may be
5 measured to assess the effect on rates and charges for all
6 customers.".
(Reference is to ESB 340 as printed February 14, 2014.)
340.7 filed by Rep. Heath VanNatter. 340.7 VanNatter more Opt Out Amend
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Delete page 2.
2 Page 3, delete lines 1 through 32, begin a new paragraph and insert:
3 "(c) A public utility may not be required to sponsor, implement,
4 or otherwise participate in an energy efficiency program. A rule or
5 an order of the commission, including a DSM order, that requires
6 a public utility to sponsor, implement, or otherwise participate in
7 an energy efficiency program is void. For purposes of this
8 subsection, a public utility is considered to sponsor an energy
9 efficiency program if a third party administrator sponsors the
10 program for the benefit of the public utility's customers.".
(Reference is to ESB 340 as printed February 14, 2014.)
I move that Engrossed Senate Bill 340 be amended to read as follows:
1 Page 2, delete lines 1 through 3.
2 Page 2, line 4, delete "(d) An industrial" and insert "(c) A".
3 Page 2, line 7, delete "An industrial" and insert "A".
4 Page 2, line 10, delete "an industrial" and insert "a".
5 Page 2, line 12, delete "industrial".
6 Page 2, line 17, delete "an industrial" and insert "a".
7 Page 2, line 19, delete "industrial".
8 Page 2, line 21, delete "industrial".
9 Page 2, line 22, delete "(e) An industrial" and insert "(d) A".
10 Page 2, line 24, delete "industrial".
11 Page 2, line 27, delete "industrial customer opts in. If the industrial"
12 and insert "customer opts in. If the".
13 Page 2, line 29, delete "industrial".
14 Page 2, line 33, delete "(f)" and insert "(e)".
15 Page 2, line 35, delete "an industrial" and insert "a".
16 Page 2, line 36, delete "(d)." and insert "(c).".
17 Page 2, line 37, delete "(g)" and insert "(f)".
1 Page 2, line 40, delete "industrial".
2 Page 2, line 42, delete "(h)" and insert "(g)".
(Reference is to ESB 340 as printed February 14, 2014.)
