Senate votes to turn off the lights on energy-saving program
A 2-year-old program designed to cut energy consumption in Indiana homes, schools, stores and factories could end Dec. 31, under a bill that passed the Senate by a wide margin Monday.
Senate Bill 340 would shut down the Energizing Indiana program, under which energy auditors visit homes and businesses and recommend ways to reduce energy consumption. Typical recommendations include switching to energy-efficient light bulbs, wrapping pipes in insulation, turning down the temperature on water heaters and getting rid of old, energy-gobbling refrigerators.
The bill, which also passed the House by a lopsided vote two weeks ago, now goes to Gov. Mike Pence for his consideration. Its future is not certain.
“The governor recognizes the important role energy efficiency has to play in Indiana’s energy portfolio,” said Kara Brooks, the governor’s spokeswoman. “SB 340 proposes a departure from Indiana’s current program, and the governor is carefully weighing whether this is best for Indiana.”
The program was launched in 2012, a few years after it was approved by the Indiana Utility Regulatory Commission with the support of then-Gov. Mitch Daniels.
Dozens of other issues — including a business tax cut and the creation of a preschool pilot program — remain unresolved as this year’s legislative session winds to a close. Legislative leaders said they are trying to end the session by Thursday, a day ahead of the mandated deadline.
If Pence goes along with the General Assembly on the energy bill, it would remove Indiana from the ranks of 26 states that require utilities to offer programs that reduce energy use, part of a growing national effort to reduce electricity demand, lower prices and cut carbon emissions.
Those states account for nearly 62 percent of electricity sales in the U.S.
Indiana utilities could continue to offer voluntary efficiency programs, but without the pressure to reduce statewide consumption by 2 percent every year through 2019, as they are now required to do.
The Senate voted 37-8 to end the program, after more than an hour of debate. The move was heavily favored by utilities and manufacturers, who said it was too expensive and the benefits were too questionable.
But the program’s supporters, which included environmentalists, citizens groups and some businesses, pushed fiercely to save it, saying it had saved enough energy each year to power 64,000 homes and was worth every penny in cutting monthly bills and air pollution.
The Senate galleries and hallways were filled with lobbyists on both sides who closely watched the debate.
The bill’s author, Sen. Jim Merritt, R-Indianapolis, said the program’s costs could reach nearly $2 billion by 2019, and the legislature needs to have more chance to review how the money is spent.
“This is an extremely expensive project which may or may not be worthwhile,” he said. “We won’t know until we study it.”
The program is funded by a fee on electricity bills that costs most homeowners about $2 or $3 a month but costs big electricity users, such as steel mills, millions of dollars a year.
Merritt said the IURC would review the program and deliver its findings by August to help the legislature determine whether the program should be revived or modified next year.
But some Senate supporters said the program should be allowed to keep going. They point out that Indiana has few other programs to cut energy use and pollution.
Sen. Mark Stoops, D-Bloomington, pointed out that Indiana ranks 46th in the nation for air pollution.
“We have one small program that chips away at it, and we’re planning on gutting it,” he said. “It just doesn’t make sense.”
Sen. John Broden, D-South Bend, said keeping the program would lower the demand for electricity and therefore the price. “Vote for lower energy prices and vote no,” he said.
Sen. Jean Breaux, D-Indianapolis, went further, saying that killing the program would “keep Indiana in the Dark Ages” on energy and environmental issues.
All Republicans except Sen. Mike Delph of Carmel voted for the bill.
Some environmental advocates harshly criticized the Senate afterward, saying they voted to kill a program that has saved electricity consumers millions of dollars and created hundreds of jobs for contractors who administer the program and make house visits.
Call Star reporter John Russell at (317) 444-6283. Follow him on Twitter: @johnrussell99.