1. (a) A corporation's board of directors is entitled to determine how money drawn from the corporation's account under section 12 of this chapter is used, subject to the following:

   1. (1) Money drawn from the corporation's account under section 12 of this chapter must be used for an alternative energy project that is approved by:

      1. (A) the office; and
      2. (B) the corporation's board.

   2. (2) If the money will be used to develop or invest in an alternative energy project that involves:

      1. (A) the construction of a new energy production or generating facility; or

      2. (B) the expansion or extension of an existing energy production or generating facility;

         the facility to be constructed, expanded, or extended as part of the alternative energy project must be located in Indiana.

   3. (3) Money drawn from the corporation's account under section 12 of this chapter may not be used to purchase electricity produced from an alternative energy project, unless the alternative energy project:

      1. (A) is located in Indiana; and
      2. (B) first came online after July 1, 2009.
   4. (4) If the money will be used for a demand side management, energy efficiency, or conservation program, the money must be dedicated to Indiana customers participating in the demand side management, energy efficiency, or conservation program.

2. (b) Subject to subsection (a), money drawn from the corporation's account under section 12 of this chapter may be used for:

   1. (1) reimbursement to the corporation for money invested by the corporation:

      1. (A) within the thirty-six (36) month period immediately preceding the date funds are applied for by the corporation under section 12 of this chapter; and
      2. (B) for the expansion or extension of an alternative energy project; and
   2. (2) contributions of matching funds to state or federal programs for alternative energy projects.

As added by P.L.151-2009, SEC.5.