IC 8-1-13.1
    Chapter 13.1. Alternative Energy Projects by Rural ElectricMembership Corporations

IC 8-1-13.1-1
Findings
    Sec. 1. The general assembly makes the following findings:
        (1) Alternative energy projects result in quantifiable reductionsin, or the avoidance of, regulated air pollutants and carbonemissions produced by traditional electric generating facilitiesthat use fossil fuels as their fuel source.
        (2) Corporations and cooperatively owned power suppliersshould plan and implement alternative energy projects on behalfof and at the request of their members.
        (3) Incentives that encourage corporations and theircooperatively owned power suppliers to:
            (A) develop alternative energy projects; and
            (B) apply for, and contribute matching funds to, state orfederal grants and programs for alternative energy projects;
        are in the public interest of the state and its citizens and arecrucial to the state's economic development efforts.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-2
"Alternative energy project"
    Sec. 2. As used in this chapter, "alternative energy project" meansa project that:
        (1) develops or makes use of:
            (A) clean coal and energy projects (as defined inIC 8-1-8.8-2);
            (B) renewable energy resources (as defined in IC 8-1-8.8-10)for the production of electricity;
            (C) integrated gasification combined cycle (IGCC)technology to produce synthesis gas that is used:
                (i) to generate electricity; or
                (ii) as a substitute for natural gas;
            regardless of the fuel source used to produce the synthesisgas;
            (D) methane recovered from landfills for the production ofelectricity;
            (E) demand side management, energy efficiency, orconservation programs; or
            (F) coal bed methane.
        (2) results in quantifiable reductions in, or the avoidance of:
            (A) the use of electricity produced by traditional electricgenerating facilities that use fossil fuels as their fuel source;or
            (B) regulated air pollutants and carbon emissions producedby traditional electric generating facilities that use fossilfuels as their fuel source; and        (3) is implemented under a plan approved by:
            (A) the office; and
            (B) a corporation's or a cooperatively owned powersupplier's board of directors.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-3
"Cooperatively owned power supplier"
    Sec. 3. As used in this chapter, "cooperatively owned powersupplier" means:
        (1) an energy utility (as defined in IC 8-1-2.5-2) that is a generaldistrict corporation organized under IC 8-1-13; or
        (2) an energy utility that is organized under IC 23-17 and whosemembership includes one (1) or more corporations organizedunder IC 8-1-13.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-4
"Corporation"
    Sec. 4. As used in this chapter, "corporation" means a corporationorganized under IC 8-1-13 as a local district corporation (as definedin IC 8-1-13-23(b)).
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-5
"Director"
    Sec. 5. As used in this chapter, "director" refers to the director ofthe office of alternative energy incentives serving under section 9(b)of this chapter.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-6
"Fund"
    Sec. 6. As used in this chapter, "fund" refers to the alternativeenergy incentive fund established by section 10 of this chapter.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-7
"Office"
    Sec. 7. As used in this chapter, "office" refers to the office ofalternative energy incentives established by section 9 of this chapter.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-8
"Retail energy service"
    Sec. 8. As used in this chapter, "retail energy service" has themeaning set forth in IC 8-1-2.5-3.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-9 Office of alternative energy incentives; director
    Sec. 9. (a) The office of alternative energy incentives isestablished within the Indiana office of energy development.
    (b) The:
        (1) director of the Indiana office of energy development; or
        (2) designee of the Indiana office of energy development, whomust be qualified by knowledge of or experience in the electricutility industry;
shall serve as the director of the office.
    (c) The director:
        (1) serves at the pleasure of and is responsible to the director ofthe Indiana office of energy development, if the director is adesignee of the director of the Indiana office of energydevelopment;
        (2) may receive compensation in an amount determined by thedirector of the Indiana office of energy development, subject tothe approval of the budget agency, if the director is a designeeof the director of the Indiana office of energy development;
        (3) serves as the chief executive and administrative officer ofthe office; and
        (4) may, to the extent appropriate, delegate the director'sauthority under this chapter, subject to the approval of:
            (A) the director of the Indiana office of energy development,if the director is a designee of the director of the Indianaoffice of energy development; and
            (B) the budget agency.
    (d) The director of the Indiana office of energy development may:
        (1) establish; and
        (2) appoint members to;
an advisory board to advise the office in the administration of thischapter.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-10
Alternative energy incentive fund; sources of funds; appropriation;expenditures; expenses; investment; nonreverting fund
    Sec. 10. (a) The alternative energy incentive fund is establishedfor the purpose of providing funds to corporations for use in thedevelopment of alternative energy projects. The fund shall beadministered by the office.
    (b) The fund consists of:
        (1) money appropriated to the fund by the general assembly;
        (2) money received from state or federal grants or programs foralternative energy projects; and
        (3) donations, gifts, and money received from any other source,including transfers from other funds or accounts.
    (c) Money in the fund is continuously appropriated for thepurposes of this section.
    (d) Money in the fund may be spent only in accordance with thischapter and to carry out the purposes of this chapter.    (e) The expenses of administering the fund shall be paid frommoney in the fund.
    (f) Notwithstanding IC 5-13, the treasurer of state shall invest themoney in the fund not currently needed to meet the obligations of thefund in the same manner as money is invested by the publicemployees retirement fund under IC 5-10.3-5. The treasurer of statemay contract with investment management professionals, investmentadvisers, and legal counsel to assist in the investment of the fund andmay pay the expenses incurred under those contracts from the fund.Interest that accrues from these investments shall be deposited in thefund.
    (g) Money in the fund at the end of a state fiscal year does notrevert to the state general fund.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-11
Office to establish account in fund for each corporation
    Sec. 11. The office shall establish an account within the fund foreach corporation.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-12
Application by corporation to office for access to funds; accessamount; application and documentation; review and disputeresolution; installments
    Sec. 12. (a) Beginning in 2009, not later than August 1 of eachyear, a corporation may apply to the office to have access to apercentage of the total funds that are, as of July 1 of the year, in theaccount established for the corporation under section 11 of thischapter, as follows:
        (1) A corporation may have access to not more than fortypercent (40%) of the total funds in the corporation's account ifthe corporation certifies to the office that alternative energyprojects accounted for five percent (5%) or less of thecorporation's total sales from the provision of retail energyservice during the preceding calendar year.
        (2) A corporation may have access to not more than seventypercent (70%) of the total funds in the corporation's account ifthe corporation certifies to the office that alternative energyprojects accounted for:
            (A) more than five percent (5%); and
            (B) not more than ten percent (10%);
        of the corporation's total sales from the provision of retailenergy service during the preceding calendar year.
        (3) A corporation may have access to one hundred percent(100%) of the total funds in the corporation's account if thecorporation certifies to the office that:
            (A) alternative energy projects accounted for at least tenpercent (10%) of the corporation's total sales from theprovision of retail energy service during the preceding

calendar year;
            (B) at least fifty percent (50%) of the sales attributed toalternative energy projects under clause (A) were made toIndiana customers; and
            (C) at least fifty percent (50%) of the alternative energyprojects that:
                (i) under clause (A) accounted for at least ten percent(10%) of the corporation's total sales from the provision ofretail energy service during the preceding calendar year;and
                (ii) are energy production or generating facilities;
            are located in Indiana.
    (b) A corporation that seeks access to a percentage of the totalfunds in the corporation's account under subsection (a) shall submit:
        (1) an application to the office on a form prescribed by theoffice; and
        (2) any documentation required by the office to support thecorporation's certification of the percentage of its total salesfrom the provision of retail energy service that is attributable toalternative energy projects during the preceding calendar year.
An application submitted under this section must be signed underpenalty of perjury by an officer of the corporation or another personauthorized to bind the corporation.
    (c) The application form prescribed by the office and described insubsection (b)(1) must require the applicant to identify:
        (1) each planned or existing alternative energy project in whichthe applicant plans to invest money drawn from the applicant'saccount under this section;
        (2) the amount of money the applicant plans to invest in eachalternative energy project identified under subdivision (1); and
        (3) any other corporations, cooperatively owned powersuppliers, or other persons that have invested or will investmoney in each alternative energy project identified undersubdivision (1), to the extent known by the applicant.
    (d) Upon receiving an application and any supporting documentsfrom a corporation under subsection (b), the office shall review theapplication and documents for accuracy and completeness. If theoffice determines that the application and documents are accurate,complete, and properly verified, the office shall notify thecorporation as soon as practicable, but in any case not later thanthirty (30) days after the date of the corporation's application, that thecorporation may have access to the percentage of funds for which thecorporation qualifies under subsection (a). If the office determinesthat the application and documents are inaccurate or incomplete, orare not properly verified, the office shall immediately notify thecorporation of any additional information or verifications required.If there is disagreement between a corporation and the office about:
        (1) the accuracy or completeness of an application or anydocuments submitted in conjunction with an application; or
        (2) the determination of, or the method used to determine, the

percentage of a corporation's total sales from the provision ofretail energy service that is attributable to alternative energyprojects;
the corporation may request a hearing or any other procedure forresolving disputes established by the office in rules adopted undersection 15 of this chapter.
    (e) A corporation may receive the percentage of funds for whichit qualifies under subsection (a) for a particular year in one (1) ormore installments. However, any money received by a corporationunder this section may be used only for one (1) or more alternativeenergy projects in accordance with section 14 of this chapter.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-13
Joint development of alternative energy projects
    Sec. 13. (a) Two (2) or more corporations that are members of thesame cooperatively owned power supplier may:
        (1) develop alternative energy projects jointly; and
        (2) share money drawn from their respective accounts in thefund with the corporations' cooperatively owned powersupplier, as long as the cooperatively owned power supplieruses the money for one (1) or more alternative energy projectsin accordance with section 14 of this chapter.
    (b) For purposes of determining the percentage of a corporation'stotal sales from the provision of retail energy service that isattributable to alternative energy projects under section 12 of thischapter, any joint project described in subsection (a)(1) shall beallocated among the participating corporations according to eachcorporation's respective investment in the joint project.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-14
Corporation's board of directors determines use of money;permissible uses of money; limitations
    Sec. 14. (a) A corporation's board of directors is entitled todetermine how money drawn from the corporation's account undersection 12 of this chapter is used, subject to the following:
        (1) Money drawn from the corporation's account under section12 of this chapter must be used for an alternative energy projectthat is approved by:
            (A) the office; and
            (B) the corporation's board.
        (2) If the money will be used to develop or invest in analternative energy project that involves:
            (A) the construction of a new energy production orgenerating facility; or
            (B) the expansion or extension of an existing energyproduction or generating facility;
        the facility to be constructed, expanded, or extended as part ofthe alternative energy project must be located in Indiana.        (3) Money drawn from the corporation's account under section12 of this chapter may not be used to purchase electricityproduced from an alternative energy project, unless thealternative energy project:
            (A) is located in Indiana; and
            (B) first came online after July 1, 2009.
        (4) If the money will be used for a demand side management,energy efficiency, or conservation program, the money must bededicated to Indiana customers participating in the demand sidemanagement, energy efficiency, or conservation program.
    (b) Subject to subsection (a), money drawn from the corporation'saccount under section 12 of this chapter may be used for:
        (1) reimbursement to the corporation for money invested by thecorporation:
            (A) within the thirty-six (36) month period immediatelypreceding the date funds are applied for by the corporationunder section 12 of this chapter; and
            (B) for the expansion or extension of an alternative energyproject; and
        (2) contributions of matching funds to state or federal programsfor alternative energy projects.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-15
Adoption of rules by office
    Sec. 15. (a) The office may adopt rules under IC 4-22-2 toimplement this chapter. Any rules adopted by the office under thissection must include:
        (1) requirements for plans for alternative energy projectssubmitted by corporations and cooperatively owned powersuppliers to the office under this chapter;
        (2) standards by which the office evaluates plans described insubdivision (1);
        (3) standards or methodologies for determining the percentageof a corporation's total sales from the provision of retail energyservice that is attributable to alternative energy projects undersection 12 of this chapter;
        (4) standards and procedures to ensure that a corporation doesnot receive money from the fund for an investment in, or apurchase of electricity from, an alternative energy project ifmoney has been received from the fund by another applicant forthe same or an equivalent investment or purchase;
        (5) procedures for resolving disputes that arise between acorporation and the office concerning:
            (A) the accuracy or completeness of an application or anydocuments submitted to the office by a corporation undersection 12(b) of this chapter; or
            (B) the determination of, or the method used to determine,the percentage of a corporation's total sales from theprovision of retail energy service that is attributable to

alternative energy projects under section 12 of this chapter;and
        (6) any other standards, methodologies, or requirementsnecessary to implement this chapter.
    (b) In adopting rules under this section, the office may consultwith the Indiana office of energy development.
As added by P.L.151-2009, SEC.5.

IC 8-1-13.1-16
Federal economic stimulus funds and programs
    Sec. 16. This chapter shall not be construed to constrain acorporation's access to and immediate use of federal economicstimulus funds for alternative energy projects. Notwithstanding anyprovision of this chapter, any money that may become available to acorporation in connection with federal economic stimulus programsmay not become part of the fund or an account established under thischapter without the consent of the corporation, which shall haveaccess to federal economic stimulus funds:
        (1) for the same uses; and
        (2) in accordance with the same processes;
as any other energy utility (as defined in IC 8-1-2.5-2) may haveaccess to or use federal economic stimulus money.
As added by P.L.151-2009, SEC.5.