IN SB0557

Establishes renewable energy standards requiring electricity suppliers to generate 3% of electricity from renewable sources by 2012, 6% by 2017, and 10% by 2022 to qualify for financial incentives; suppliers opting out must meet lower targets of 1.5%, 4%, and 7% by those same dates

Allows the Indiana Utility Regulatory Commission (IURC) to include in a public utility's rate base up to $50 million in capital expenditures for extending gas or electric service to customers producing biofuels (biodiesel, ethanol)

Creates financial incentives for electric line facilities projects that transmit or distribute electricity from renewable energy sources, capped at the lesser of 7% of the supplier's rate base or $300 million per project

Expands "clean coal and energy projects" to "clean energy projects" to include low carbon dioxide emitting or non-carbon dioxide emitting energy production facilities, making them eligible for cost recovery and up to 3 percentage points additional return on shareholder equity

Adds combined heat and power facilities to the definition of renewable energy resources and allows eligible businesses to recover preconstruction costs (siting, design, licensing, permitting) for new energy facilities regardless of whether the facility is ultimately constructed