Text: H05173                            Text: H05175
Text: H05100 - H05199                   Text: H Index
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House Amendment 5174

Amendment Text

PAG LIN
  1  1    Amend House File 2087 as follows:
  1  2    #1.  By striking everything after the enacting
  1  3 clause and inserting the following:
  1  4    "Section 1.  Section 476.1A, Code 1995, is amended
  1  5 by adding the following new subsection:
  1  6    NEW SUBSECTION.  7.  Purchase of electricity from
  1  7 alternate energy production facilities as required in
  1  8 sections 476.41 through 476.45.
  1  9    Sec. 2.  Section 476.1A, unnumbered paragraph 3,
  1 10 Code 1995, is amended to read as follows:
  1 11    However, sections 476.20, 476.21, 476.41 through
  1 12 476.44, 476.51, 476.56, 476.62, and 476.66 and
  1 13 chapters 476A and 478, to the extent applicable, apply
  1 14 to such electric utilities.
  1 15    Sec. 3.  Section 476.1B, subsection 1, paragraph g,
  1 16 Code 1995, is amended by striking the paragraph and
  1 17 inserting in lieu thereof the following:
  1 18    g.  Purchase of electricity from alternate energy
  1 19 production as required in sections 476.41 through
  1 20 476.45.
  1 21    Sec. 4.  Section 476.6, Code 1995, is amended by
  1 22 adding the following new subsection:
  1 23    NEW SUBSECTION.  22.   ALTERNATE ENERGY PROMOTIONAL
  1 24 RATES.  The board shall require that electric
  1 25 utilities offer to their customers the opportunity to
  1 26 pay, on a voluntary basis, an alternate energy
  1 27 promotional rate.  This rate shall exceed the rate for
  1 28 electricity otherwise payable and shall be designed
  1 29 and encouraged by the electric utility to maximize
  1 30 voluntary financial support for alternate energy
  1 31 production.  The alternate energy promotional rate
  1 32 shall be filed as a tariff with the board pursuant to
  1 33 section 476.4.  Retaining only amounts approved by the
  1 34 board for its administrative and marketing costs, the
  1 35 electric utility shall remit that portion of the
  1 36 electric rate attributable to the alternate energy
  1 37 promotional rate to the department of revenue and
  1 38 finance in the same manner as sales tax is remitted
  1 39 under chapter 422.
  1 40    Sec. 5.  Section 476.41, Code 1995, is amended to
  1 41 read as follows:
  1 42    476.41  PURPOSE.
  1 43    It is the policy of this state to encourage the
  1 44 development of cost-effective alternate energy
  1 45 production facilities and small hydro facilities in
  1 46 order to conserve our finite and expensive energy
  1 47 resources and to provide for their most efficient use.
  1 48    Sec. 6.  Section 476.42, subsection 1, Code 1995,
  1 49 is amended to read as follows:
  1 50    1.  "Alternate energy production facility" means
  2  1 any or all of the following:
  2  2    a.  A solar, wind turbine, waste management,
  2  3 resource, methane recovery, refuse-derived fuel, or
  2  4 agricultural crops or residues, or woodburning
  2  5 facility.  Alternate energy production facility
  2  6 includes a small hydro facility as defined in
  2  7 subsection 4.
  2  8    b.  Land, systems, buildings, or improvements that
  2  9 are located at the project site and are necessary or
  2 10 convenient to the construction, completion, or
  2 11 operation of the facility.
  2 12    c.  Transmission or distribution facilities
  2 13 necessary to conduct the energy produced by the
  2 14 facility to users located at or near the project site
  2 15 the electric utility purchasing the electricity.
  2 16    A facility which is a qualifying facility under 18
  2 17 C.F.R.  part 292, subpart B is not precluded from
  2 18 being an alternate energy production facility under
  2 19 this division.  A facility which is owned by an
  2 20 electric utility is considered to be an alternate
  2 21 energy production facility for purposes of this
  2 22 division.
  2 23    Sec. 7.  Section 476.42, subsection 3, Code 1995,
  2 24 is amended by striking the subsection.
  2 25    Sec. 8.  Section 476.42, subsection 4, Code 1995,
  2 26 is amended to read as follows:
  2 27    4.  "Small hydro facility" means any or all of the
  2 28 following:
  2 29    a.  A hydroelectric facility at a dam, located
  2 30 within this state.
  2 31    b.  Land, systems, buildings, or improvements that
  2 32 are located at the project site and are necessary or
  2 33 convenient to the construction, completion, or
  2 34 operation of the facility.
  2 35    c.  Transmission or distribution facilities
  2 36 necessary to conduct the energy produced by the
  2 37 facility to users located at or near the project site
  2 38 the electric utility purchasing the electricity.
  2 39    A facility which is a qualifying facility under 18
  2 40 C.F.R.  part 292, subpart B is not precluded from
  2 41 being a small hydro facility under this division.  A
  2 42 facility which is owned by an electric utility is
  2 43 considered to be a small hydro facility for purposes
  2 44 of this division.
  2 45    Sec. 9.  Section 476.43, Code 1995, is amended by
  2 46 striking the section and inserting in lieu thereof the
  2 47 following:
  2 48    476.43  ALTERNATE ENERGY PURCHASE REQUIREMENTS.
  2 49    1.  PURCHASE REQUIREMENT.  The board shall require
  2 50 an electric utility, within the state, to enter into
  3  1 contracts for the purchase of the utility's allotted
  3  2 portion of eighty-nine megawatts of electricity
  3  3 generated from alternate energy production facilities
  3  4 located in the utility's service area and subject to
  3  5 the terms and conditions established by the board
  3  6 pursuant to this section.
  3  7    2.  ALLOCATION.  By August 31, 1996, the board
  3  8 shall allocate among the classes of alternate energy
  3  9 production facilities, the amount of electricity to be
  3 10 purchased from that class of facility.  The board's
  3 11 action shall result in an allotment of electricity
  3 12 purchases assigned each class of alternate energy.
  3 13 Alternate energy classes include wind, methane
  3 14 recovery, agricultural crops or residue recovery, and
  3 15 hydro generated electricity.
  3 16    3.  COMPETITIVE BIDDING.  Within each class of
  3 17 alternate energy production facility, the board shall
  3 18 require competitive bidding to be conducted by
  3 19 electric utilities for the purchase of electricity
  3 20 assigned that class.
  3 21    The board shall establish the required
  3 22 specifications for a qualifying bid, and a schedule
  3 23 for the conduct of all rounds of competitive bidding,
  3 24 including a detailed timeline for facility
  3 25 construction and energy delivery, and any other
  3 26 contract terms the board deems necessary and
  3 27 commercially reasonable.  In the conduct of
  3 28 competitive bidding, the board shall require
  3 29 compliance with all applicable provisions of the
  3 30 competitive bidding procedures of the department of
  3 31 general services printing division as stated in 401
  3 32 IAC ch. 5.  The first round of competitive bidding
  3 33 shall be completed not later than December 31, 1996,
  3 34 and the last shall be completed not later than
  3 35 December 31, 1997.  If the first round of competitive
  3 36 bidding is not fully successful in fulfilling the
  3 37 allotments as specified by the board, the board shall
  3 38 require the repeat of competitive bidding as necessary
  3 39 to fulfill the allotments.  Upon the completion of
  3 40 each round, the board shall designate as successful
  3 41 the lowest responsible bid or bids that meet all
  3 42 bidding specifications.
  3 43    4.  PURCHASES.  Upon designation of a successful
  3 44 proposal, the board shall require the successful
  3 45 bidder and the electric utility in whose service area
  3 46 the facility is to be located to enter into a contract
  3 47 for the purchase of electricity from that alternate
  3 48 energy production facility in the amount specified by
  3 49 the board.  The contract shall be executed within
  3 50 ninety days after designation of the successful
  4  1 bidder.  Any item in dispute shall be submitted to the
  4  2 board for resolution.  The contract shall require the
  4  3 electric utility to pay to the facility during the
  4  4 contract term the utility's incremental cost of
  4  5 electricity as certified not later than the bidding
  4  6 deadline by the board.  For purposes of this section,
  4  7 "incremental cost" means the cost to the electric
  4  8 utility of the electricity which, but for the purchase
  4  9 from the alternate energy production facility, the
  4 10 electric utility would have generated or purchased
  4 11 from another source.  The board shall pay to the
  4 12 facility the balance of the purchase price designated
  4 13 in the facility's successful bid.
  4 14    5.  PRIVATE CONTRACTS.  Notwithstanding other
  4 15 provisions of this section to the contrary, an
  4 16 electric utility and an alternate energy production
  4 17 facility may enter into a long-term contract and may
  4 18 agree to rates for purchase and sale transactions.  A
  4 19 contract entered into under this subsection must be
  4 20 filed with the board in the manner provided for
  4 21 tariffs under section 476.4.
  4 22    6.  ADDITIONAL FACILITIES AND BACKUP POWER.  This
  4 23 section does not require an electric utility to
  4 24 construct additional facilities unless those
  4 25 facilities are paid for by the owner or operator of
  4 26 the affected alternate energy production facility.
  4 27 The electric utility shall provide for the
  4 28 availability of supplemental or backup power to
  4 29 alternate energy production facilities on a
  4 30 nondiscriminatory basis and at just and reasonable
  4 31 rates.
  4 32    Sec. 10.  Section 476.44, Code 1995, is repealed.
  4 33    Sec. 11.  GOOD FAITH INVESTMENT – REIMBURSEMENT
  4 34 MECHANISM.  It is the intent of the general assembly
  4 35 that persons who have proceeded in good faith under
  4 36 the terms and conditions of sections 476.43 and
  4 37 476.44, Code 1995, prior to their amendment in this
  4 38 Act, and who choose not to submit competitive bids
  4 39 pursuant to section 476.43, not suffer economic loss
  4 40 as a result of this Act.  The Iowa utilities board
  4 41 shall recommend a mechanism for reimbursement from the
  4 42 general fund of the state for those reasonable good
  4 43 faith development costs by those persons deemed by the
  4 44 board to have been incurred in good faith.  This
  4 45 recommendation shall be made to the general assembly
  4 46 by December 31, 1996.
  4 47    Sec. 12.  EXISTING CONTRACTS.  Notwithstanding the
  4 48 amendments to section 476.43 and 476.44, as contained
  4 49 in this Act, nothing in this Act shall be construed to
  4 50 modify the terms of any contract entered into prior to
  5  1 December 31, 1995, between an electric utility and an
  5  2 alternate energy production facility or small hydro
  5  3 facility.  The Iowa utilities board shall continue to
  5  4 allow the recovery of costs incurred, until the
  5  5 termination of such contracts."
  5  6    #2.  Title page, by striking lines 1 through 3 and
  5  7 inserting the following:  "An Act relating to
  5  8 alternate energy production and purchase, requiring
  5  9 the purchase of eighty-nine megawatts of alternate
  5 10 energy, requiring consideration of a reimbursement
  5 11 mechanism for good faith investment, and requiring the
  5 12 use of an alternate energy promotional rate."
  5 13    #3.  By renumbering as necessary.  
  5 14 
  5 15 
  5 16                              
  5 17 COMMITTEE ON COMMERCE AND
  5 18 REGULATION
  5 19 METCALF of Polk, Chairperson
  5 20 HF 2087.302 76
  5 21 js/cf
     

Text: H05173                            Text: H05175
Text: H05100 - H05199                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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