Senate File 2192 - Introduced SENATE FILE BY HOGG Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to greenhouse gas emissions, specifying 2 greenhouse gas reduction goals, carbon dioxide sequestration 3 assessments, and cost recovery disallowance of designated 4 public utility investments under certain circumstances. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6250XS 82 7 rn/rj/5 PAG LIN 1 1 Section 1. Section 455B.851, subsection 7, Code Supplement 1 2 2007, is amended to read as follows: 1 3 7. After consideration of a full range of policies and 1 4 strategies, including the cost=effectiveness of the 1 5 strategies, the council shall develop multiple scenarios 1 6 designed to reduce statewide greenhouse gas emissions 1 7including one scenario that would reduce such emissionsby 1 8 fifty to ninety percent by 2050. The council shall also 1 9 develop short=term, medium=term, and long=term scenarios 1 10 designed to reduce statewide greenhouse gas emissions and 1 11 shall consider the cost=effectiveness of the scenarios. The 1 12 council shall establisha2005 as the baseline year for 1 13 purposes of calculating reductions in statewide greenhouse gas 1 14 emissions and assessing the extent to which the goal is being 1 15 achieved. The council shall submit the proposal to the 1 16 governor and the general assembly by January 1,20082009. 1 17 Sec. 2. Section 476.6, Code Supplement 2007, is amended by 1 18 adding the following new subsection: 1 19 NEW SUBSECTION. 23. COST RECOVERY DISALLOWANCE == 1 20 GREENHOUSE GAS ATTRIBUTION. In determining or approving rates 1 21 applicable to gas and electric utilities subject to rate 1 22 regulation under this chapter, the board may disallow cost 1 23 recovery of all or a portion of investment expenses incurred 1 24 by the utility on or after July 1, 2008, which the board 1 25 determines are attributable to greenhouse gas emissions and 1 26 associated emission control equipment. 1 27 Sec. 3. CARBON DIOXIDE SEQUESTRATION == FEASIBILITY STUDY. 1 28 The department of natural resources shall conduct a 1 29 feasibility study regarding the potential for carbon dioxide 1 30 storage in underground geological formations in this state. 1 31 The study shall include identification of potential storage 1 32 locations, carbon dioxide gas transmission to storage 1 33 locations, greenhouse gas reduction estimates, and estimated 1 34 costs. The department shall submit a report summarizing the 1 35 results of the study and making recommendations to the 2 1 governor, the director of the office of energy independence, 2 2 and the general assembly by January 1, 2009. 2 3 EXPLANATION 2 4 This bill relates to greenhouse gas emission reduction and 2 5 related matters. 2 6 The bill modifies provisions relating to greenhouse gas 2 7 reduction strategies to be developed by the Iowa climate 2 8 change advisory council to specify a statewide greenhouse gas 2 9 emission reduction goal of from 50 to 90 percent by 2050, when 2 10 compared to 2005 as the baseline year. 2 11 The bill also authorizes the Iowa utilities board, in 2 12 determining or approving rates applicable to rate=regulated 2 13 gas and electric utilities, to disallow cost recovery of all 2 14 or a portion of investment expenses incurred by a utility on 2 15 or after July 1, 2008, which the board determines are 2 16 attributable to greenhouse gas emissions and associated 2 17 emission control equipment. 2 18 Additionally, the bill directs the department of natural 2 19 resources to conduct a feasibility study regarding the 2 20 potential for carbon dioxide storage in underground geological 2 21 formations in this state, and to submit a report summarizing 2 22 the results of the study and making recommendations to the 2 23 governor, the director of the office of energy independence, 2 24 and the general assembly by January 1, 2009. 2 25 LSB 6250XS 82 2 26 rn/rj/5