HB 1081 Summary

• Requires the Indiana Utility Regulatory Commission (IURC) to allow public utilities to recover 50% of capital costs for extending gas or electric service to biofuel producers through their rate base, capped at $10 million total, if they comply with renewable energy standards and enter into a cost-sharing agreement with the customer.

• Establishes financial incentives for electricity suppliers to fund electric line facility projects (transmission, distribution, substations) through periodic rate adjustment mechanisms, including projects serving renewable energy customers, with cost recovery limits expiring December 31, 2020.

• Mandates electricity suppliers to meet renewable energy portfolio standards by specified dates: 4% by 2011, 7% by 2013, 10% by 2016, 15% by 2021, and 20% by 2026, measured by retiring renewable energy credits (RECs), with a lower alternative schedule of 3-15% for non-compliant suppliers.

• Imposes a $25 per megawatt-hour penalty on electricity suppliers that fail to comply with renewable energy requirements, and revokes financial incentives for suppliers that elect but fail to meet the higher renewable energy standard.

• Directs the IURC to encourage use of American-made products in utility programs related to biofuels projects, electric line facilities, and renewable energy facility construction.