EEA Database on Distributed Generation

WHAT'S NEW:

No recent state activity has been identified.

If a source has PTE less than 5 tpy for PM/PM-10; 10 tpy each for NOx, SO2, and VOC; and 25 tpy CO, the unit is exempt from permitting requirements. Combustion sources with the following fuel and heat input combinations are exempt:

Natural gas – less than 10 MMBtu/hr
Propane/LPG – less than 6 MMBtu/hr
Diesel or natural gas internal combustion engines – less than 500,000 Btu/hr, with a site cap of 2 MMBtu/hr for all such units

MINOR SOURCE PERMITTING

The state has a variety of specific requirements affecting minor sources. They are as follows:

Fuel Type or Source Location	PM	SO2	NOx
Burning Coal	> 250 MMBtu/hr = 0.10 lb/MMBtu 25-250 MMBtu/hr = 0.35 lb/MMBtu < 25 MMBtu/hr = 0.6 lb/MMBtu	6.0 lb/MMBtu Coal and oil = 6.0 lb/MMBtu	N/A
Burning Liquid Fuel	0.15 lb/MMBtu	Residual Oil = 1.6 lb/MMBtu; Distillate Oil = 0.5 lb/MMBtu	N/A
Burning Gaseous Fuel	0.01 grain/dscf	N/A	N/A
Clark and Floyd Counties	N/A	N/A	BACT
Lake County	N/A	Natural Gas	N/A

There is a 30-day public comment period for minor sources. The state has a maximum of 120 days (including the comment period) to issue the permit.

MAJOR NSR/PSD PERMITTING

A potential to emit 250 tons (100 tons for listed sources) per year of a criteria pollutant triggers PSD in attainment areas. The state has been issued a NOx waiver so in the ozone nonattainment areas 25 tons of VOC or 50 tons per year of NOx triggers NSR. In the PM and SO2 nonattainment areas 100 tons per year of either pollutant triggers NSR.

TREATMENT OF EMERGENCY ENGINES

A unit up to 110 hp that burns gasoline, 1,600 hp burning diesel and 16,000 hp burning natural gas is exempted from permitting and may operate up to 500 hours per year for emergencies and maintenance. In addition, sources consisting only of emergency and standby equipment at residential sites (such as dorms, prisons, and hospitals) are exempt from permitting requirements, with no size cut-off or stated limit on the number of hours per year the unit may be run. No letter or state notification is required for these units.

SITING REQUIREMENTS FOR NON-UTILITY GENERATORS:

Regulated utilities under the jurisdiction of the Indiana Utility Regulatory Commission (IURC) require approval prior to construction of new generation facilities, but proposed generation facilities whose output will be used on-site are exempt from approval of the IURC.

However, a developer is required to submit the following

170 IAC 4-4.1-13 Reporting requirements for proposed alternate energy production and cogeneration facilities

Sec. 13. (a) “Facility” for purposes of this section means any alternate energy production and cogeneration facility as previously defined under 170 IAC 4-4.1-1.
(b) Persons wishing to proceed with the construction of a facility as defined for purposes of this section, will submit a report to the commission entailing the following:

(1) the location of the facility;
(2) the form(s) of energy output of the facility;
(3) the owner(s), form and percentage of ownership of the facility;
(4) the maximum electric generating capacity of the facility;
(5) the expected annual electric energy output of the facility for the first five years of its operation;
(6) the primary fuel to be used for the production of electricity by the facility; and
(7) the expected life of the facility; and
(8) the expected date of commercial operation for the facility.

On January 9th, 2003 state Senator Beverly Gard (R) introduced legislation (S.B. 209) that would have entered a new chapter, 8.4, into the legislative code had it passed. The new legislation would have given the IURC oversight over the location of merchant power plants in the state. Among other things, it would have required developers to verify that they had considered brownfields, site consideration for industrial use, and it would have required the submittal of a “proof of financial responsibility.” The complete Indiana code is available here; Chapter 8.5 outlines utility plant construction regulations.

BUILDING, ZONING AND FIRE CODES:

Building Codes: The 2008 Indiana Building Code is currently in effect. It is based on the 2006 IBC with some amendments.

Fire Prevention and Building Safety Commission

Energy Codes: Indiana utilizes the 1992 Indiana Energy Conservation Code, which is based on the 1992 Model Energy Code with some amendments.

Office of Energy and Defense Development

Fire Codes: Indiana has enacted the 2008 Indiana Fire Code, which references the 2006 IFC with some amendments

Indiana State Fire Marshall

Zoning: Zoning and planning happens at the local level. Check with each jurisdiction regarding their zoning codes.

Resources (information may not be as current as provided above)

A general overview of each state’s enacted codes can be found HERE.

The International Code Council Adoption page gives state-by-state adoption status of specific ICC codes, as well as information about code adoption by some municipal governments within that state.

Information about energy codes can be found at the DOE’s Building Codes for Energy Efficiency page or at the Building Codes Assistance Project

INTERCONNECTION REQUIREMENTS:

Indiana Utility Regulatory Commission (IURC) rules governing distributed generation require utilities to provide three levels of interconnection to customer-generators. Level 1 applies to inverter-based systems with a maximum nameplate capacity of 10 kilowatts (kW). These systems must comply with IEEE 1547 and UL 1741 standards. There are no application fees or other fees for Level 1 interconnection review. L evel 2 interconnection applies to systems with a maximum capacity of 2 megawatts (MW). These systems also must comply with IEEE 1547 and UL 1741 standards. For Level 2 interconnection, a utility may charge fees of up to $50, plus $1 per kW of the system's nameplate capacity, plus the cost of any minor modifications to the electric distribution system or additional review. Level 3 interconnection applies to systems that do not qualify for either Level 1 or Level 2 interconnection procedures. For Level 3 interconnection review, a utility may charge up to $100 plus $2 per kW of the system's nameplate capacity, as well as charges for actual time spent on any impact or facilities studies required by Indiana's rules.

Utilities have to use an application and agreement approved by the IURC for each of the three levels. Customer-generators are required to obtain "only reasonable amounts of insurance against risks for which there is a likelihood of occurrence."

For more information contact the IURC or your electricity generation and transmission utility.

David Johnston
Indiana Utility Regulatory Commission
Electricity Division
302 West Washington Street, Suite E-306
Indianapolis, IN 46204
Phone: (317) 232-4234
Fax: (317) 232-6758
E-Mail:djohnston@urc.in.gov

EXIT FEES:

There is no statewide exit fee policy in Indiana. However, no utilities charge them.

UTILITY STANDBY RATES:

Indiana does not have a statewide policy on standby rates. Relevant policies for Indiana utilities are summarized below.

PSI Energy Inc (Duke Energy): Backup service is provided at the same rate as distribution service, plus facilities and meter charges that the utility must put in place for the customer. Distribution service has a demand component and energy charges. Billing demand is based on the maximum 30 minute demand of the month with no ratchet. Detailed rate information is available at: http://www.duke-energy.com/rates/indiana/tariff.asp

Northern Indiana Pub Serv Co : Standby service is provided at a high demand rate with low energy charges. Billing demand is based on the higher of the maximum 30 minute demand or 50% of the maximum momentary demand of the month. Detailed rate information is available at: http://www.nipsco.nisource.com/rates/index.asp

Indiana

WHAT'S NEW:

AIR EMISSIONS REGULATIONS:

BUILDING, ZONING AND FIRE CODES:

EXIT FEES: