SF 2372 (LSB 5714SV (1) 90)

SENATE FILE 2372

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3176)

A BILL FOR

An Act relating to electric transmission lines and electric transmission owners, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 478.16, Code 2024, is amended to read as follows:
   478.16  Electric transmission lines —— federally registered planning authority transmission plans.
   1.  Development and investment in high-voltage transmission is urgently needed to ensure the reliable, adequate, secure, and stable delivery of electricity to consumers. To ensure reliable electric service to the people of Iowa as a matter of public policy, it is the intent of the general assembly to express a preference for further investment in Iowa transmission infrastructure by electric transmission owners who have already dedicated significant resources to develop the infrastructure on which Iowans rely.
   1.  2.  As used in this section, unless the context otherwise requires:
   a.  “Electric transmission line” means a high-voltage electric transmission line located in this state with a capacity of one hundred kilovolts or more and any associated electric transmission facility, including any substation or other equipment located in this state.
   b.  “Electric transmission owner” means an individual or entity who, as of July 1, 2020, owns and maintains an electric transmission line that is required for rate-regulated electric utilities, municipal electric utilities, and rural electric cooperatives in this state to provide electric service to the public for compensation.
   c.  “Incumbent electric transmission owner” means any of the following, which may be formed, located, or headquartered in any state:
   (1)  A public utility or a municipally owned utility that owns, operates, and maintains an electric transmission line in this state.
   (2)  An electric cooperative corporation or association or municipally owned utility that owns an electric transmission facility in this state and has turned over the functional control of such facility to a federally approved authority.
   (3)  An “electric transmission owner” as defined in paragraph “b”.
   d.  “Landowner” means the same as defined in section 478.2.
   e.  “Municipally owned utility” means a “city utility” as defined in section 362.2, or an “electric power agency” as defined in section 390.9 which that is comprised solely of cities or solely of cities and other political subdivisions.
   2.  3.  An incumbent electric transmission owner has the right to construct, own, and maintain an electric transmission line that has been approved for construction in a federally registered planning authority transmission plan and which that directly connects to an electric transmission facility owned by the incumbent electric transmission owner. Where a proposed electric transmission line would directly connect to electric transmission facilities owned by two or more incumbent electric transmission owners, each incumbent electric transmission owner whose facility connects to the electric transmission line has the right to construct, own, and maintain the electric transmission line individually and equally. If an incumbent electric transmission owner declines to construct, own, and maintain its portion of an electric transmission line that would connect to electric transmission facilities owned by two or more incumbent electric transmission owners, then the other incumbent electric transmission owner or owners that own an electric transmission facility to which the electric transmission line connects has the right to construct, own, and maintain the electric transmission line individually.
   3.  4.  If an electric transmission line has been approved for construction in a federally registered planning authority transmission plan after July 1, 2020, and the electric transmission line is not subject to a right of first refusal in accordance with the tariff of a federally registered planning authority, then within the later of ninety days of approval for construction or ninety days after enactment of this Act, an incumbent electric transmission owner, or owners if there is more than one owner, that owns a connecting electric transmission facility shall give written notice to the board regarding whether the incumbent electric transmission owner or owners intend to construct, own, and maintain the electric transmission line. If the incumbent electric transmission owner or owners give notice of intent to construct the electric transmission line, the incumbent electric transmission owner or owners shall follow the applicable franchise requirements pursuant to this chapter. If the incumbent electric transmission owner or owners give notice declining to construct the electric transmission line or fail to provide timely notice of the intent to construct the project, the board may determine whether another person may construct the electric transmission line.
   4.  5.  For projects where for which an election to construct an electric transmission line has been made under this section, all of the following cost accountability measures shall apply:
   a.  Within thirty days after the issuance of a franchise pursuant to this chapter for the electric transmission line, the incumbent electric transmission owner or owners shall provide to the board an estimate of the cost to construct the electric transmission line.
   b.  Until construction of the electric transmission line is complete, the incumbent electric transmission owner or owners shall provide a quarterly report to the board, which shall include an updated estimate of the cost to construct the electric transmission line and an explanation of changes in the cost estimate from the prior cost estimate.
   5.  6.  This section shall not modify the authority of the board under this chapter, the rights of landowners under this chapter, or the requirements, rights, and obligations relating to the construction, maintenance, and operation of electric transmission lines pursuant to this chapter.
   6.  7.  This section shall not apply to an electric transmission line to be placed underground that has not been approved for construction in a federally registered planning authority transmission plan.
   7.  8.  The board shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  The provisions of this Act shall apply retroactively to July 1, 2020.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to electric transmission lines and electric transmission owners. The bill expounds the legislative purpose of Code section 478.16, identifying Iowa consumers’ urgent need for development and investment in high-voltage transmission. The bill provides that an incumbent electric transmission owner may be formed, located, or headquartered in any state as long as the electric transmission line is located in Iowa.
   Under the bill, an existing electric transmission facility owner has the right to construct, own, and maintain an electric transmission line that directly connects to the electric transmission facility. If a proposed transmission line would directly connect to facilities owned by two or more facility owners, each owner has the right to construct, own, and maintain the electric transmission line individually and equally.
   After July 1, 2020, approved electric transmission lines not subject to right of first refusal in a federally registered planning authority transmission plan shall give notice to the Iowa utilities board (board) whether the incumbent electric transmission owner or owners intend to construct, own, and maintain the electric transmission line. The notice shall be given within the later of 90 days of approval for construction or 90 days after enactment of the bill. The board may determine whether another person may construct the electric transmission line if the incumbent electric transmission owner or owners give notice declining to construct or do not give timely notice.
   The bill takes effect upon enactment.
   The bill applies retroactively to July 1, 2020, for an electric transmission line approved for construction in a federally registered planning authority transmission plan.