Senate panel alters bill that would slow coal plant closures
INDIANAPOLIS (AP) - An Indiana Senate panel has passed a stripped-down version of a bill consumer and environmental groups have argued could stifle growth in renewable energy such as wind and solar power by making it more difficult for Indiana electric companies to close more coal-fired power plants.
The Senate Utilities Committee voted 8-2 Thursday to approve the legislation after passing an amendment that removed language that would allow utilities to increase their coal reserves and require them to keep coal plants operational - both of which would likely result in higher rates for their customers.
The amendment also moved up the House bill's sunset date by four months, to Dec. 31, 2020, meaning that it would be in effect for only six months.
The Senate panel's chairman, Republican state Sen. Jim Merritt, said he authored the amendment 'œbecause the way the bill came into my committee, I could not support it."
The bill will now head to the full Senate floor for a vote, where further changes could be made.
In its original form, the House bill would have raised the bar - and likely prolonged the process - for utilities wanting to close coal-fired power plants at a time when such plants are the only ones closing. Many critics have called the bill's efforts to delay plant retirements a coal bailout.
The bill was dialed back in the House with, among other changes, a provision to require the Indiana Utility Regulatory Commission to hold a public hearing on the closure of any electric generation facilities and issue a nonbinding opinion.
The legislation comes at a time when at least four large Indiana electric utilities intend to close several coal-burning plants in the coming years. Experts say market forces favoring natural gas and other alternative energy sources such as wind and solar are largely responsible for driving such plants to close.
Some 40 coal miners wearing denim overalls with reflective stripes were among about 100 people who attended Thursday's committee meeting. Miners and members of the Indiana Coal Council spoke in favor of the House version of the bill, before the changes were made by Merritt's amendment.
Sen. Erin Houchin, R-Salem, said he's concerned that what remained in the bill will have little impact.
'œI'm under the impression or opinion that we need to have our coal plants operational,'ť he said.
Republican Rep. Bruce Borders of Jasonville said coal is a primary reason Indiana - which currently gets 70 percent of its electricity from coal-burning plants - has affordable electricity.
'œI think we're foolish to treat coal as something who's day has come and gone,'ť he said.
Several groups which have previously spoke in opposition to the bill - including the consumer advocacy group Citizens Action Coalition, the Indiana Industrial Energy Consumers group, the Sierra Club and the Hoosier Environmental Council - said they support the amendments which diluted the legislation.
Jesse Kharbanda, executive director of the Hoosier Environmental Council, said he appreciated efforts to reduce the harm of the original bill, but noted that there remains a risk it could revert to earlier versions in the remaining weeks of the legislative session.
'œWe empathize with those lawmakers concerned about the transition from coal-to-clean energy: We think that managing that transition would be better served by Indiana lawmakers getting briefed by their counterparts in Iowa, as Iowa gets nearly 40% of their electricity from renewables and has lower electricity costs and sound reliability,'ť he said.