Indiana House panel OKs solar bill on party-line vote

Indiana's electric companies won the first round Wednesday in a contentious fight over a bill that critics say would slam the state's startup solar energy industry.

But opponents promised to keep fighting. And despite the serious smack-down, one critic of House Bill 1320 said he left a House committee hearing feeling upbeat.

Only time will tell whether he had reason for that optimism — or was just punch-drunk.

"We're not going to give up," said Kerwin Olson, executive director of Citizens Action Coalition. "This will probably pass the House, but I think we can stop it in the Senate."

It likely will take a herculean effort, if Wednesday's hearing is any indication.

For nearly two hours, members of the House Utilities, Energy and Telecommunications Committee listened as a parade of speakers urged them to table the solar energy bill until its full impact could be studied.

HB 1320 would cut the amount that power companies must pay when they buy excess energy generated by home systems and would allow utilities to charge a "user fee" to solar customers to help cover their fixed costs of the power grid. The bill also would set safety standards for system installations and allow for leasing of small-scale systems.

The pros and cons of those changes were at the heart of Wednesday's debate.

First up were four people the acting committee chairman described as "neutral."

Three of them called for the committee to delay action on HB 1320 — which critics contend could cripple the state's solar energy industry — until an in-depth study could be conducted.

The fourth was a Ball State professor who spoke about findings of a new study commissioned by the Indiana Energy Association, the trade group behind the legislation.

Then came the "opponents."

Eight of the 42 people who signed up to speak against the proposed legislation got an opportunity to share their concerns before Rep. Heath VanNatter, R-Kokomo, shut down the critics. He said the committee would be there all night if he allowed everyone to speak.

Each of those who did get to speak asked lawmakers to slow the rush, to step back and follow the lead of other states that have studied the complicated issue.

Finally, it was time for supporters to speak.

There were only two, and just one — Mark Maassel, the head of the Indiana Energy Association — was there to fully support the legislation sponsored by Rep Eric Koch, R-Bedford. The other "supporter" was there to speak for one provision that would help manufacturers, not the more controversial provisions.

Maassel said the bill would eliminate what the utilities see as a subsidy shifting costs to nonsolar users and actually make solar power more accessible to more Hoosiers. He then cited the study his organization had financed.

When it was time for the committee to vote, the final tally came down along party lines: nine "yes" votes from Republican members and four "no" votes from Democratic members. The vote came one day before the deadline for legislation to be passed out of committees.

"I think it was shameful," Olson said of the committee vote. "The committee hearing clearly displayed that there is overwhelming opposition. It is patently clear that this is 100 percent the initiative of the utilities."

The bill now moves to the full House, despite an outpouring of concerns from the far-reaching coalition of opponents that include environmentalists, conservative Christians, the NAACP and tea party representatives.

Some of the GOP lawmakers who voted to move the controversial legislation forward said they are confident Koch will be open to further discussing some of the concerns raised at the hearing.

Koch said he thinks the bill — which was amended just hours before the hearing — strikes a fair balance between the concerns of the power companies and small-scale solar energy producers and suppliers.

Rep. Ed Soliday, R-Valparaiso, said the bill is "a step in the right direction" to addressing a rapidly changing dynamic in the power industry. He also was critical of opponents, many of whom spilled into an overflow area outside the hearing room, for cheering and clapping during testimony by some critics.

That was no way to foster the collaboration necessary to fine tune the bill, Soliday scolded.

Rep. Christina Hale, D-Indianapolis, the committee's ranking minority member, said she couldn't understand the rush to push the bill through the legislature this year.

"Where's the fire? What's the urgency?" Hale asked. "Why do we have to do this now?"

Hale was among Democrats who joined critics in calling for "a sophisticated, thoughtful study" of the complicated issues surrounding the give-and-take between the utility companies and Hoosiers who have small, rooftop solar and wind generating systems.

Right now, that is only about 600 homeowners and small businesses. But the writing is on the wall: Under the right circumstances, Indiana — like many other states — is on the verge of a boom in rooftop solar because of technology improvements and falling prices.

One other thing became clear after Wednesday's committee vote: The fight over HB 1320 is far from over.

Tim Evans is The Star's consumer advocate. Call him at (317) 444-6204. Follow him on Twitter: @starwatchtim.