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Indiana Legislator Introduces Feed-in Tariff Bill

by Nancy Reinhart — last modified Jan 18, 2010 02:55 PM

 

From Renewable Energy World 
comes this interesting news:


On January 7, 2009, a key legislator in Indiana introduced a proposal to establish a comprehensive system of “feed-in tariffs,” designed to spur the rapid development of jobs and in-state renewable energy generation.


A feed-in tariff is a fancy name for a guaranteed rate that utility companies can be required to pay for approved types of in-state renewable energy generation. This approach has been used successfully in many places to encourage private investment in renewable energy facilities and systems. The costs are covered by a small charge on all utility customers bills.
Sustainable energy legislation, including a proposed feed-in tariff, is expected to be introduced in Kentucky during the 2010 legislative session. More information about the concept of feed-in tariffs is available in this white paper commissioned by the Kentucky Conservation Committee.


The legislation proposed in Indiana has a number of unique features. The bill would provide different rates for renewable energy projects that qualify for federal incentives and those that don’t – a provision that helps non-profits and individuals who can’t benefit from large income tax credits because their incomes aren’t large. It also contains a system of different rates for wind energy that is based on the quality of the wind resource in a particular area. This is intended to spread development of wind turbines across the state and avoid concentrations in only the windiest areas. There is also a special rate for small residential-scale wind turbines. The legislation establishes guaranteed rates for a range of wind, solar, hydro and biomass technologies, excluding biomass from forestry and coal-bed methane gas.


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