Net Metering Bills Pass Senate and House

Posted by Laura Arnold  /   February 03, 2010  /   Posted in 2010 Indiana General Assembly, Uncategorized  /   No Comments

Both net metering bills in the 2010 session of the Indiana General Assembly passed third reading or final passage in their House of Origin.

SB 313 introduced by Sen. Jim Merritt, Jr. (R-Indianapolis) called down his net metering in the Indiana Senate around 5:20 pm. Sen. Merritt presented a summary of the bill emphasizing that the bill expands net metering to all customer classes. During his comments at the microphone, Merritt said the bill allows utility customers to “produce what you use, use what you produce”.

Sen. Merritt addressed questions from Sen. Phil Boots (R-Crawfordsville) about whether there was a 1:1 reduction in a customer’s bill. Sen. Merritt responded that customers buy at retail and put electricity back into the grid at wholesale. Thank goodness the bill as currently drafted doesn’t do that since that is not REAL net metering but rather what some refer to as “net billing”. Sen. Boots also wanted to know “How does the utility recovery its costs?”

Sen. Sue Errington (D-Muncie) and a co-author of SB 313 as well as the author of another net metering bill, SB 97, that never received a committee hearing, spoke in favor of SB 313. Sen. Errington also introduced SB 94 to establish a Renewable Electricity Standard (RES) for Indiana which was also denied a committee hearing this session. Unfortunately, this is a common occurrence in the Republican controlled Indiana Senate. The Senate Republicans hold a 33 member majority compared to the meager 17 Senate Democrats.

“I think we are making progress,” said Sen. Errington. “I am glad we are back at it after last session.”

Sen. Errington referred to a Wall Street Journal article about a recent report entitled Freeing the Grid that evaluates states including Indiana against “best practices” in net metering. Sen. Errington noted that “Indiana got an F”.

She stated that SB 313 was setting the floor for net metering and that it gave the Indiana Utility Regulatory Commission (IURC) the ability to construct the ceiling.

She expressed dismay that there were still some pieces in the bill and that the second reading amendments offered but not adopted would have made the bill even better.

Sen. Errington offered the following reasons to support SB 313:

  1. Net metering has no cost to the state.
  2. Consumers who invest in energy systems that net meter will be winners.
  3. Net metering is good for the economy in terms of manufacturing and installation jobs creation.
  4. We are all winners with net metering because it lowers the state’s carbon footprint.

 

SB 313 passed by a vote of 49-0. Sen. Merritt announced that the House sponsors of SB 313 were Reps. Dvorak and Lutz.

Since the House started at the end of their calendar numerically, HB 1094 was handed down for third reading or final passage in the House around 9:26 pm.

Rep. Ryan Dvorak (D-South Bend) who introduced HB 1094 gave a brief description of the bill and stated that of the 42 states that have net metering Indiana was the most restrictive.

Rep. Wes Culver (R-Goshen) who is a co-author of HB 1094 spoke in favor of the bill. Culver emphasized that net metering was only giving customers credit not a check for excess power they generated. He said there is no RES in this bill. This bill is clean. There are no tax incentives.

Rep. Jack Lutz (R-Anderson) spoke against the bill and explained that he was not afforded an opportunity to offer an amendment to the bill in committee.

“I don’t know why we are exempting those utilities” said Lutz referring to the fact that Rep. Kreg Battles (D-Vincennes) offered amendments in committee to remove both REMC’s and municipal electric utilities from the bill.

The total House floor debate lasted at most 5 minutes. The bill passed by a vote of 78 to 21.

The roll call vote for HB 1094 showing how state representatives voted may be found at http://www.in.gov/legislative/bills/2010/PDF/Hrollcal/0150.PDF.pdf.

Rep. Dvorak announced that the Senate sponsors for HB 1094 are Sens. Merritt and Errington.

Bills must pass the second house by March 3rd. The 2010 session must adjourn by March 14th.

To better understand the lingo and the state legislative process in Indiana please see this document prepared by the Indiana Chamber of Commerce entitled, How a Bill Becomes a Law.

IURC Denies Petition for Clarification in Generic DSM Investigation

Posted by Laura Arnold  /   February 03, 2010  /   Posted in Uncategorized  /   No Comments

For a little background on this story, please see this earlier blog post. http://blog.indianarenew.org/2009/12/jolted-into-efficiency-we-all-must-do.html.

The Indiana Utility Regulatory Commission (IURC) issued the following order in Cause No. 42693 on Demand Side Management. In denying the requested clarification it looks to me that the IURC basically told the affected utilities to just read the order. PERIOD. END OF STORY. Here is the order issued today in its entirety.

On July 28, 2004, the Indiana Utility Regulatory Commission ("Commission") initiated an investigation to review Demand Side Management ("DSM") issues and programs in the State of Indiana. The Commission issued its Phase I Order in this proceeding on April 23, 2008. In its Phase I Order, the Commission outlined a series of issues to be addressed in Phase II of this proceeding. Pursuant to notice, duly published as required by law, an Evidentiary Hearing was held in Phase II of this proceeding on August 25, 2009, at 9:30 a.m. EDT, in Room 222, National City Center, 101 West Washington Street, Indianapolis, Indiana. Following the Evidentiary Hearing and the submission of proposed orders, the Commission issued a Phase II Order in this Proceeding on December 9, 2009.

On December 29, 2009, Anderson Municipal Light & Power ("Anderson"); City of Auburn, Indiana ("Auburn"); Duke Energy Indiana, Inc. ("Duke Energy Indiana"); Harrison County Rural Electric Membership Corporation; Hoosier Energy Rural Electric Cooperative, Inc.; Indiana Michigan Power Company; Indiana Municipal Power Agency; Indianapolis Power & Light Company; Jackson County Rural Electric Membership Corporation; Marshall County Rural Electric Membership Corporation; Mishawaka Utilities; Northern Indiana Public Service Company; Northeastern Rural Electric Membership Corporation; Richmond Power & Light; Southern Indiana Gas & Electric Company, d/b/a Vectren Energy Delivery of Indiana, Inc.; and Wabash Valley Power Association, Inc. (all of the foregoing referred to herein as the "Utility Group") filed a Petition for Reconsideration in the Nature of Clarification ("Motion for Clarification" or "Motion") of the Phase II Order.

In its Motion for Clarification, the Utility Group indicated that the Motion "identifies some, but not all, of the questions and issues arising from the Commission's Phase II Order." Notwithstanding this caveat, the Motion for Clarification specifically identifies certain issues that the Utility Group contends are in need of clarification and intersperses additional arguments with respect to additional issues.

With respect to specific issues identified in the Motion for Clarification, the Utility Group presents the following matters for consideration by the Commission: (1) whether the percentages by year of annual savings goals in the Phase II Order are intended to be annual savings or incremental annual savings targets; (2) whether core and non-core programs count toward the energy efficiency targets; (3) whether historical utility-sponsored DSM program savings count toward the saving targets; (4) whether the current economic downturn in electricity sales will be considered vis-a-vis achievement of the interim or overall goals; (5) how the load from customers that are allowed to opt out of programs will be addressed with respect to measuring savings; (6) how fluctuations in large customer load will impact goal achievement and whether issues regarding the harmonization of the target savings with other state policies such as economic development will be considered; (7) how state and federal codes/standards may be counted toward the achievement of the established goals and if utility advocacy with respect to participation in the establishment of increased codes and standards will be recognized in determining compliance with the energy savings goals; (8) whether, additional evidence related to any of these issues may be presented in the Implementation Subdocket; (9) whether the requirements contained in the Phase II Order will be adjusted to reflect decisions made
throughout the Implementation Subdocket.

The Commission has reviewed the Motion for Clarification and finds that the Phase II Order is clear on its face with respect to its specific conclusions as well as the specific limited issues to be considered by the Commission in the Implementation Subdocket. Therefore, the Motion for Clarification is hereby denied. In reaching this conclusion, the Commission notes that it conducted an Attorneys' Conference on January 26, 2010 in an effort to facilitate implementation of the Phase II Order and that Commission staff will continue to work with the parties in the Implementation Subdocket to ensure that the provisions of the Phase II Order are effectuated in a timely manner.

IT IS THEREFORE ORDERED BY THE INDIANA UTILITY REGULATORY COMMISSION that:

1. The Motion for Reconsideration in the Nature of Clarification filed in this matter on December 29, 2009, is hereby denied in its entirety by the Commission.

2. This Order shall be effective on and after the date of its approval.

HARDY, ATTERHOLT, GOLC AND ZIEGNER CONCUR; LANDIS ABSENT:


APPROVED: Feb. 3, 2010

California Adopts Nation’s First Statewide Green Building Standard

Posted by Laura Arnold  /   January 31, 2010  /   Posted in Uncategorized  /   No Comments

This is an excerpt from EERE Network News, a weekly electronic newsletter.

January 27, 2010

The California Building Standards Commission unanimously adopted the first-in-the-nation mandatory Green Building Standards Code, called CALGreen, on January 12. The program, which takes effect on January 1, 2011, will require all new buildings in the state to be more energy efficient and environmentally responsible. California Governor Arnold Schwarzenegger said the action lays the foundation for the move to greener buildings constructed with environmentally advanced building practices that reduce energy use, decrease waste, and conserve resources.

CALGreen will require mandatory inspections of energy systems (such as furnaces, heat pumps, air conditioners, and other mechanical equipment) for nonresidential buildings with more than 10,000 square feet of floor space, to ensure that the energy systems are working at their maximum capacity and according to their design efficiencies. It also requires that every new building constructed in California reduce water consumption by 20%, divert 50% of construction waste from landfills, and install materials that emit low amounts of indoor pollutants. In addition, separate water meters are required for nonresidential buildings' indoor and outdoor water use, with a requirement for moisture-sensing irrigation systems for larger landscape projects. While water conservation is itself a priority in the state, water consumption is directly tied to energy consumption. A 2005 report from the California Energy Commission (CEC) found that water use consumes 19% of the state's electricity, 30% of its natural gas, and at least 88 billion gallons of diesel fuel per year, although those figures included water heating. See the CEC report (PDF 1.3 MB). Download Adobe Reader.

The California Air Resources Board estimates that the mandatory provisions will reduce greenhouse gas emissions by the equivalent of 3 million metric tons of carbon dioxide in 2020. Upon passing state building inspection, California's property owners will have the ability to label their facilities as CALGreen compliant without using additional third-party certification programs. See the governor's press release and the Web site for the California Building Standards Commission, which has not yet posted the CALGreen code.

SB 313 Amended; HB 1094 Moves to 2nd R on Mon., Feb 1st

Posted by Laura Arnold  /   January 29, 2010  /   Posted in Uncategorized  /   No Comments

House Action

Although the House version of net metering, HB 1094 was on the second reading calendar yesterday (01/28/10), the House did not address the bills on second reading. It appeared they adjourned at 3:35 pm somewhat prematurely  after a skirmish on a adopting a Committee Report on HB 1369 on transportation issues. Therefore, all the bills on the second reading calendar roll over to the calendar for Monday, February 1st starting at 10:30 am.
 
When the House finally started yesterday about 11:45 am they started in reverse numerical order with bills on the third reading calendar. Then they also took a lunch break. Around 2:20 pm Rep. Matt Pierce (D-Bloomington) called down HB 1063 Energy Efficient Buildings. Following a brief floor debate (less than 10 minutes) with Rep. Sean Eberhardt (R-Shelbyville) and Rep.Bill Davis (R-Portland) both spoke against the bill. Rep. Pierce opened and closed the debate. The bill passed by a vote of 51-47. The Senate sponsors are Sen. Beverly Gard (R-Greenfield) and Sen. Karen Tallian (D-Portage).
 
See roll call at: http://www.in.gov/legislative/bills/2010/PDF/Hrollcal/0087.PDF.pdf. This was mostly a party line vote with a handful of cross overs, e.g. Rep.Ed Clere (R-New Albany) voting "YES" and Rep. Terry Goodin (D-Crothersville) and Rep. Steven Stemler (D-Jeffersonville) voting "NO". Rep. Dennis Oxley (D-English) and Rep. Dan Stevenson (D-Highland) excused from voting.

Senate Action

SB 313 was amended yesterday with only one amendment offered by Sen. Jim Merritt (R-Indianapolis). Eleven (11) amendments were filed for consideration, however, only a few were offered. Sen. Sue Errington (D-Muncie)  offered #3 which was rejected on a voice vote. Likewise Sen. Jean Breaux (D-Indianapolis) offered #3 which was rejected. Sen. Karen Tallian (D-Portage) offered #7 and Sen. John Broden (D-South Bend)  offered #11; both rejected on a voice vote. 

The reprinted version of SB 313 with the new amendment incorporated can be found at: http://www.in.gov/legislative/bills/2010/PDF/SB/SB0313.2.pdf

Both net metering bills, HB 1094 and SB 313, need to pass third reading or final passage in the first house (aka house of origin) by Wednesday, February 3rd. Then bills cross-over and the process starts over in the second house.

Advanced Renewable Energy Contracts Needed in Indiana

Posted by Laura Arnold  /   January 27, 2010  /   Posted in Advanced renewable energy contracts (AREC's), Uncategorized  /   No Comments

Net metering is not the only issue that Indiana Distributed Energy Advocates (IDEA) is supporting.  HB 1190 to create advanced renewable energy contracts (AREC) or feed-in tariffs (FiT) is supported by IDEA.

The IDEA member leading this campaign is Chris Striebeck.  Chris has developed a working draft PowerPoint presentation for discussion. He is also finalizing a narrative for this presentation so that it is essentially self-contained.

Check it out here Why Feed-in Tariffs are Right for Indiana?

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