Indiana SB 196: Community energy facilities.

Bill Text

Introduced Version
SENATE BILL No. 196
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 8-1-42.5.
Synopsis: Community energy facilities. Requires the Indiana utility
regulatory commission (commission) to adopt rules governing
community energy facilities not later than July 1, 2028. Provides that,
not later than 180 days after adoption of the rules, an electricity
supplier shall begin: (1) allowing interconnection of the electricity
supplier's facilities with community energy facilities with which at least
three of the electricity supplier's customers have entered into a
subscription; and (2) crediting the electricity supplier's subscribing
customers for the amount of electricity from the community energy
facility to which the customer subscribes. Requires the commission to:
(1) establish an interconnection working group composed of
representatives of electricity suppliers and other stakeholders with
respect to electric utility service; and (2) implement the working
group's recommendations regarding creation, revision, or elimination
of policies, processes, tariffs, rules, or standards relating to the
interconnection of community energy facilities and electricity suppliers
as necessary for transparent, accurate, and efficient implementation of
community energy facilities. Prohibits an investor owned utility from:
(1) owning a community energy facility; or (2) offering incentive
programs to community energy facilities.
Effective: July 1, 2026.
Walker G
January 6, 2026, read first time and referred to Committee on Utilities.
2026 IN 196—LS 6591/DI 150

Introduced
Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
SENATE BILL No. 196
A BILL FOR AN ACT to amend the Indiana Code concerning
utilities.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 8-1-42.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]:
4 Chapter 42.5. Community Energy Facilities
5 Sec. 1. The definitions in IC 8-1-40 apply throughout this
6 chapter.
7 Sec. 2. As used in this chapter, "community energy facility"
8 means a facility:
9 (1) that generates electricity;
10 (2) that is located on a single parcel of land;
11 (3) that is interconnected to the electric distribution grid;
12 (4) to which at least three (3) persons located in the electricity
13 supplier service area in which the facility is located have
14 entered into a subscription;
15 (5) in which at least sixty percent (60%) of the generating
16 capacity is allocated to subscriptions of twenty-five (25)
17 kilowatts or less; and
2026 IN 196—LS 6591/DI 150

2
1 (6) that is designed to offset the energy use of a specified set of
2 subscribers, with no single subscriber having more than a
3 twenty percent (20%) interest in the facility.
4 Sec. 3. (a) As used in this chapter, "community energy facility
5 organization" means an organization whose purpose is to
6 beneficially own and operate a community energy facility for the
7 subscribers to the community energy facility.
8 (b) A community energy facility organization may be a
9 for-profit, nonprofit, cooperative, or governmental entity
10 authorized by Indiana law.
11 Sec. 4. As used in this chapter, "disadvantaged business
12 enterprise" has the meaning set forth in IC 5-16-6.5-1.
13 Sec. 5. As used in this chapter, "low or moderate income" means
14 an individual or household income of not more than eighty percent
15 (80%) of the area median income based on United States
16 Department of Housing and Urban Development guidelines.
17 Sec. 6. As used in this chapter, "nameplate capacity" has the
18 meaning set forth in 170 IAC 4-4.2-1.
19 Sec. 7. As used in this chapter, "subscribing customer" means
20 a retail customer of an electricity supplier that enters into one (1)
21 or more subscriptions with one (1) or more community energy
22 facilities.
23 Sec. 8. As used in this chapter, "subscription" means a contract
24 between a subscriber and a community energy facility
25 organization.
26 Sec. 9. Not later than one hundred eighty (180) days after the
27 commission adopts rules under section 14 of this chapter, an
28 electricity supplier shall begin:
29 (1) allowing interconne