CHAPTER 8.7. CLEAN COAL TECHNOLOGY
IC 8-1-8.7
Chapter 8.7. Clean Coal Technology
IC 8-1-8.7-1
"Clean coal technology"
Sec. 1. As used in this chapter, "clean coal technology" means atechnology (including precombustion treatment of coal):
(1) that is used in a new or existing electric generating facilityand directly or indirectly reduces airborne emissions of sulfuror nitrogen based pollutants associated with the combustion oruse of coal; and
(2) that either:
(A) is not in general commercial use at the same or greaterscale in new or existing facilities in the United States as ofJanuary 1, 1989; or
(B) has been selected by the United States Department ofEnergy for funding under its Innovative Clean CoalTechnology program and is finally approved for suchfunding on or after January 1, 1989.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-2
"Public utility"
Sec. 2. As used in this chapter, "public utility" means a public ormunicipally owned utility.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-3
Certificate of public convenience and necessity; use of clean coaltechnology
Sec. 3. (a) Except as provided in subsection (c), a public utilitymay not use clean coal technology at a new or existing electricgenerating facility without first applying for and obtaining from thecommission a certificate that states that public convenience andnecessity will be served by the use of clean coal technology.
(b) The commission shall issue a certificate of public convenienceand necessity under subsection (a) if the commission finds that aclean coal technology project offers substantial potential of reducingsulfur or nitrogen based pollutants in a more efficient manner thanconventional technologies in general use as of January 1, 1989. Forpurposes of this chapter, a project that the United States Departmentof Energy has selected for funding under its Innovative Clean CoalTechnology program and is finally approved for funding afterDecember 31, 1988, is not considered a conventional technology ingeneral use as of January 1, 1989. When determining whether togrant a certificate under this section, the commission shall examinethe following factors:
(1) The costs for constructing, implementing, and using cleancoal technology compared to the costs for conventionalemission reduction facilities. (2) Whether a clean coal technology project will also extend theuseful life of an existing electric generating facility and thevalue of that extension.
(3) The potential reduction of sulfur and nitrogen basedpollutants achieved by the proposed clean coal technologysystem.
(4) The reduction of sulfur nitrogen based pollutants that can beachieved by conventional pollution control equipment.
(5) Federal sulfur and nitrogen based pollutant emissionstandards.
(6) The likelihood of success of the proposed project.
(7) The cost and feasibility of the retirement of an existingelectric generating facility.
(8) The dispatching priority for the facility utilizing clean coaltechnology, considering direct fuel costs, revenues andexpenses of the utility, and environmental factors associatedwith byproducts resulting from the utilization of the clean coaltechnology.
(9) Any other factors the commission considers relevant,including whether the construction, implementation, and use ofclean coal technology is in the public's interest.
(c) A public utility is not required to obtain a certificate under thischapter for a clean coal technology project that constitutes a researchand development project that may be expensed under IC 8-1-2-6.1.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-4
Hearings and requisite findings; estimated costs; use of Indianacoal
Sec. 4. (a) As a condition for receiving the certificate requiredunder section 3 of this chapter, an applicant must file an estimate ofthe cost of constructing, implementing, and using clean coaltechnology and supportive technical information in as much detail asthe commission requires.
(b) The commission shall hold a public hearing on eachapplication. A certificate shall be granted only if the commission has:
(1) made a finding that the public convenience and necessitywill be served by the construction, implementation, and use ofclean coal technology;
(2) approved the estimated costs;
(3) made a finding that the facility where the clean coaltechnology is employed:
(A) utilizes and will continue to utilize Indiana coal as itsprimary fuel source; or
(B) is justified, because of economic considerations orgovernmental requirements, in utilizing non-Indiana coal;
after the technology is in place; and
(4) made a finding on each of the factors described in section3(b) of this chapter, including the dispatching priority of thefacility to the utility.As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-5
Modification or revocation of certificate
Sec. 5. When, in the opinion of the commission, changes in theestimate of the cost or the need for clean coal technology occur, thecommission shall immediately commence a review of the certificategranted under this chapter to determine if public convenience andnecessity will be served by the implementation of the technology. Ifthe commission finds that implementation of the technology will notserve the public convenience and necessity, the commission maymodify or revoke the certificate.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-6
Cancellation of clean coal technology implementation; recovery ofexpenditures
Sec. 6. If a public utility cancels the implementation of thetechnology as a result of the modification or revocation of acertificate by the commission under section 5 of this chapter, thepublic utility may recover the amount of its investment in thetechnology, along with a reasonable return on the unamortizedbalance. The utility may not recover on amounts expended in excessof the cost estimates approved by the commission under section 4 ofthis chapter unless the utility can prove to the commission that thoseexpenditures were necessary and prudent. The recovery must bemade over a reasonable period of time through rates charged by thepublic utility. A recovery may not be made if there was fraud,concealment, or gross mismanagement on the part of the publicutility.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-7
Ongoing review of construction and costs
Sec. 7. (a) This section does not apply if the utility elects thereview described in section 8 of this chapter.
(b) In addition to the review of the continuing need for the cleancoal technology system under construction prescribed in section 5 ofthis chapter, the commission shall at the request of the public utilitymaintain an ongoing review of that construction as the constructionproceeds. The applicant shall submit each year during construction,or at other times as the commission and the public utility mutuallyagree, a progress report and any revisions in the cost estimates for theconstruction. The commission must hold a public hearing before itmay approve or deny a proposed increase in the cost estimates for theimplementation, construction, or use of clean coal technology.
(c) If the commission approves the construction and the cost ofthe part of the clean coal technology system under review, theapproval forecloses subsequent challenges to the inclusion of thatpart of the clean coal technology system in the public utility's rate
base on the basis of excessive cost, inadequate quality control, orinability to employ the technology.
(d) If the commission disapproves of all or part of the constructionor cost of the part of the clean coal technology system under review,the commission may modify or revoke the certificate. If the publicutility cancels construction of the clean coal technology system as aresult of the modification or revocation of the certificate, the utilitymay recover over a reasonable period of time through rates, absentfraud, concealment, or gross mismanagement, the amount of itsinvestment in the clean coal technology system along with areasonable return on the unamortized balance to the extent theconstruction and the cost were approved previously by thecommission.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-8
Review of completed construction; costs exceeding estimated andapproved costs
Sec. 8. A public utility may elect to forgo any commission reviewof the construction and cost until completion of the clean coaltechnology system. If the commission has annually approved thecontinuing need for the project under section 5 of this chapter, andto the extent the public utility seeks to add to the rate base an amountthat does not exceed that filed under section 4(a) of this chapter, theinclusion of that amount may be challenged only on the basis ofinadequate quality controls. However, inclusion of costs in excess ofthose approved by the commission under section 4(b)(2) of thischapter is not permitted unless the public utility shows those costs tobe necessary and prudent.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-9
Dispatching priority
Sec. 9. After the commission has made a finding under section4(b)(4) of this chapter as to the dispatching priority of a facilityutilizing clean coal technology, the utility receiving the certificateunder this chapter may dispatch the facility for which the certificateis issued in accordance with such finding, and such dispatch shall notbe considered to be in conflict with the provisions of IC 8-1-2-42.
As added by P.L.105-1989, SEC.4.
IC 8-1-8.7-10
Construction of electric generating facilities; additionalcertification; joint applications
Sec. 10. (a) This chapter does not relieve a public utility of theduty to obtain a certificate under IC 8-1-8.5 if the utility is proposingthe use of clean coal technology as a part of the construction of anelectric generating facility.
(b) A public utility seeking a certificate under IC 8-1-8.5 and thischapter for one (1) project may file a joint application for both
certificates. If a joint application is filed, the commission shalljointly consider both certificates.
As added by P.L.105-1989, SEC.4.