House File 2256 - Introduced



                                       HOUSE FILE       
                                       BY  BERRY and KRESSIG


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act specifying conditions for the issuance of a certificate of
  2    public convenience, use, and necessity by the Iowa utilities
  3    board to a coal=fired merchant power plant.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 6374YH 82
  6 rn/rj/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  476A.16  COAL=FIRED MERCHANT
  1  2 POWER PLANTS == ALLOCATION OF REVENUE.
  1  3    1.  For purposes of this section, "coal=fired merchant
  1  4 power plant" means a power plant located in this state that
  1  5 burns coal and is not owned or operated by a public utility,
  1  6 municipally owned utility, municipal power agency, or electric
  1  7 cooperative corporation or association and which is not
  1  8 subject to rate regulation pursuant to chapter 476.
  1  9    2.  As a condition for issuance of a certificate by the
  1 10 board pursuant to this chapter, the board shall require an
  1 11 owner or operator of a coal=fired merchant power plant to
  1 12 allocate revenue derived from the operation of the facility as
  1 13 follows:
  1 14    a.  Provide one=tenth of one percent of gross revenue for
  1 15 the support of the Iowa energy center established in section
  1 16 266.39C and the university of Iowa center for global and
  1 17 regional environmental research established by the state board
  1 18 of regents.
  1 19    b.  Provide two percent of gross revenue for an energy
  1 20 management improvement grant program to be administered by the
  1 21 center for energy and environmental education at the
  1 22 university of northern Iowa.
  1 23    3.  As a condition for issuance of a certificate by the
  1 24 board pursuant to this chapter, the owner or operator of a
  1 25 coal=fired merchant power plant shall develop a multiyear plan
  1 26 and budget for managing regulated emissions from the facility
  1 27 in a cost=effective manner, as follows:
  1 28    a.  The initial multiyear plan and budget shall be filed
  1 29 with the board when an application for a certificate pursuant
  1 30 to section 476A.3 is submitted by the owner or operator, with
  1 31 an additional copy provided to the department of natural
  1 32 resources.  The plan shall, at a minimum, meet the electric
  1 33 power generating facility emissions criteria and standards
  1 34 applicable to plans approved by the board for rate=regulated
  1 35 utilities pursuant to section 476.6, subsection 22.  If the
  2  1 board determines the plan to be deficient or inadequate in any
  2  2 way, a certificate shall not be issued.
  2  3    b.  Updates to the plan and budget, incorporating the most
  2  4 up=to=date technological developments relating to emissions
  2  5 regulation, shall be filed with the board at least every
  2  6 twenty=four months, with a copy provided to the department of
  2  7 natural resources.
  2  8    c.  Updates shall be considered in a contested case
  2  9 proceeding pursuant to chapter 17A.  The department of natural
  2 10 resources and the consumer advocate shall participate as
  2 11 parties to the proceeding.
  2 12    d.  The department of natural resources shall state whether
  2 13 the plan or update meets applicable state environmental
  2 14 requirements for regulated emissions.  If the plan does not
  2 15 meet these requirements, the department shall recommend
  2 16 amendments that outline actions necessary to bring the plan or
  2 17 update into compliance with the environmental requirements.
  2 18    e.  The board shall not approve a plan or update that does
  2 19 not meet applicable state environmental requirements and
  2 20 federal ambient air quality standards for regulated emissions
  2 21 from electric power generating facilities located in this
  2 22 state.
  2 23    f.  The board shall issue an order approving or rejecting a
  2 24 plan, update, or budget within one hundred eighty days after
  2 25 the utility's filing is deemed complete; however, upon good
  2 26 cause shown, the board may extend the time for issuing the
  2 27 order as follows:
  2 28    (1)  The board may grant an extension of thirty days.
  2 29    (2)  The board may grant more than one extension, but each
  2 30 extension must rely upon a separate showing of good cause.
  2 31    (3)  A subsequent extension must not be granted any earlier
  2 32 than five days prior to the expiration of the original
  2 33 one=hundred=eighty=day period, or the current extension.
  2 34    g.  If the plan is rejected by the board, the board shall
  2 35 issue an order to the owner or operator of the coal=fired
  3  1 merchant power plant to cease generation of power within
  3  2 thirty days.
  3  3    4.  The board, after consultation with the department of
  3  4 natural resources, may waive all or part of the requirements
  3  5 of subsection 2 upon finding that the coal=fired merchant
  3  6 power plant has achieved other methods to offset its
  3  7 production of greenhouse gases and other pollutants.
  3  8    5.  The board shall adopt rules pursuant to chapter 17A
  3  9 prescribing the regulatory standards and implementation
  3 10 procedures relating to application of the requirements of this
  3 11 section.
  3 12                           EXPLANATION
  3 13    This bill specifies conditions which must be satisfied by
  3 14 the owner or operator of a coal=fired merchant power plant in
  3 15 order to be issued a certificate of public convenience, use,
  3 16 and necessity by the Iowa utilities board.
  3 17    The bill defines a coal=fired merchant power plant to refer
  3 18 to a plant located in Iowa that burns coal and is not owned or
  3 19 operated by a public utility, municipally owned utility,
  3 20 municipal power agency, or electric cooperative corporation or
  3 21 association, and which is not subject to rate regulation
  3 22 pursuant to Code chapter 476.
  3 23    The bill provides that to be issued a certificate, an owner
  3 24 or operator of a coal=fired merchant power plant must allocate
  3 25 one=tenth of 1 percent of gross revenue from the plant's
  3 26 operation for the support of the Iowa energy center and the
  3 27 center for global and regional environmental research, and
  3 28 allocate 2 percent of gross revenue for an energy management
  3 29 improvement grant program to be administered by the center for
  3 30 energy and environmental education at the university of
  3 31 northern Iowa.  These allocations may be waived if it is
  3 32 determined that such a power plant has achieved other methods
  3 33 to offset its production of greenhouse gases and other
  3 34 pollutants.
  3 35    The bill also requires for issuance of a certificate that
  4  1 the owner or operator develop a multiyear plan and budget for
  4  2 managing regulated emissions from the power plant in a
  4  3 cost=effective manner.  The plan and budget is required to be
  4  4 submitted to the board together with the application for
  4  5 issuance of the certificate, with a copy of the plan and
  4  6 budget provided to the department of natural resources.  The
  4  7 bill references emissions criteria and standards which must be
  4  8 met by the plan, requires updates every two years
  4  9 incorporating the most up=to=date emissions regulation
  4 10 technology, indicates that updates shall be considered in
  4 11 contested case proceedings, and directs the department of
  4 12 natural resources to determine if a plan or update meets
  4 13 applicable state environmental requirements for regulated
  4 14 emissions and provide recommendations for compliance.  If the
  4 15 plan does not meet these requirements, the department shall
  4 16 recommend amendments that outline actions necessary to bring
  4 17 the plan or update into compliance with the environmental
  4 18 requirements.  Additionally, provisions relating to time
  4 19 frames for plan approval or rejection are contained in the
  4 20 bill, and for rulemaking by the board.
  4 21 LSB 6374YH 82
  4 22 rn/rj/14