House File 2214 HOUSE FILE BY BAUDLER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the allocation of natural gas delivery taxes 2 on delivery of natural gas to a new electric power generating 3 peaking plant. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6021HH 80 6 mg/pj/5 PAG LIN 1 1 Section 1. Section 437A.3, Code Supplement 2003, is 1 2 amended by adding the following new subsection: 1 3 NEW SUBSECTION. 23A. "Peaking plant" means, for any tax 1 4 year, a new electric power generating plant, regardless of 1 5 ownership, which operated during the preceding calendar year 1 6 at a net capacity factor of thirty=five percent or less. For 1 7 purposes of this subsection, "net capacity factor" means net 1 8 actual generation during the preceding calendar year divided 1 9 by the product of nameplate capacity times the number of hours 1 10 the plant was in the active state during the preceding 1 11 calendar year. Upon commissioning, a plant is in the active 1 12 state until it is decommissioned. For purposes of this 1 13 subsection, "net actual generation" means the net electrical 1 14 megawatt hours produced by a plant during a calendar year. 1 15 Sec. 2. Section 437A.15, subsection 3, paragraph a, 1 16 unnumbered paragraph 2, Code Supplement 2003, is amended to 1 17 read as follows: 1 18 When allocating natural gas delivery taxes on deliveries of 1 19 natural gas to a new electric power generating plant, except 1 20 as a peaking plant, ten percent of those natural gas delivery 1 21 taxes shall be allocated over new gas property built to 1 22 directly serve the new electric power generating plant and 1 23 ninety percent of those natural gas delivery taxes shall be 1 24 allocated to the general property tax equivalents of all gas 1 25 property within the natural gas competitive service area or 1 26 areas where the new gas property is located. 1 27 When allocating natural gas delivery taxes on deliveries of 1 28 natural gas to a new electric power generating peaking plant, 1 29 one hundred percent of those natural gas delivery taxes shall 1 30 be allocated over new gas property built to directly serve the 1 31 new electric power generating peaking plant. 1 32 EXPLANATION 1 33 This bill provides that in the case of a new electric power 1 34 generating peaking plant, 100 percent of the natural gas 1 35 delivery taxes on delivery of natural gas to such plant is 2 1 allocated to the new gas property built to directly serve the 2 2 peaking plant rather than the 10 percent under present law. 2 3 This tax is in lieu of property taxes and is imposed pursuant 2 4 to Code chapter 437A. A "peaking plant" is a new electric 2 5 power generating plant that initially generates electricity on 2 6 or after January 1, 2003, and which has a net capacity factor 2 7 for the previous calendar year of 35 percent or less. 2 8 LSB 6021HH 80 2 9 mg/pj/5