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Text: H05441                            Text: H05443
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House Amendment 5442

Amendment Text

PAG LIN
  1  1    Amend the amendment, H-5174, to House File 2087 as
  1  2 follows:
  1  3    #1.  By striking page 1, line 2, through page 5,
  1  4 line 13, and inserting the following:
  1  5    "#   .  By striking everything after the enacting
  1  6 clause and inserting the following:
  1  7    "Section 1.  Section 422.51, Code 1995, is amended
  1  8 by adding the following new subsection:
  1  9    NEW SUBSECTION.  5.  The taxes remitted pursuant to
  1 10 this division shall be reduced by an alternate energy
  1 11 purchase tax credit.  An electric utility which has
  1 12 purchased electricity from an alternate energy
  1 13 production facility or small hydro facility pursuant
  1 14 to section 476.43 shall be granted the credit.  The
  1 15 credit shall equal the difference between the
  1 16 competitively bid rate that the utility paid for
  1 17 purchase of the electricity and the rate which is
  1 18 equivalent to the true economic cost attributed to
  1 19 production of the electricity by the electric utility,
  1 20 as established by the board pursuant to section
  1 21 476.43.
  1 22    Sec. 2.  Section 476.1A, Code 1995, is amended by
  1 23 adding the following new subsection:
  1 24    NEW SUBSECTION.  7.  Encouragement of alternate
  1 25 energy production and the purchase of alternate
  1 26 energy.
  1 27    Sec. 3.  Section 476.1A, unnumbered paragraph 3,
  1 28 Code 1995, is amended to read as follows:
  1 29    However, sections 476.20, 476.21, 476.41 through
  1 30 476.44, 476.51, 476.56, 476.62, and 476.66 and
  1 31 chapters 476A and 478, to the extent applicable, apply
  1 32 to such electric utilities.
  1 33    Sec. 4.  Section 476.1B, subsection 1, paragraph g,
  1 34 Code 1995, is amended by striking the paragraph and
  1 35 inserting in lieu thereof the following:
  1 36    g.  Encouragement of alternate energy production
  1 37 and the purchase of alternate energy.
  1 38    Sec. 5.  Section 476.42, subsection 1, paragraph a,
  1 39 Code 1995, is amended to read as follows:
  1 40    a.  A solar, wind turbine, waste management,
  1 41 resource methane recovery, refuse-derived fuel,
  1 42 agricultural crops or residues, or woodburning
  1 43 facility.
  1 44    Sec. 6.  Section 476.42, subsection 3, Code 1995,
  1 45 is amended by striking the subsection.
  1 46    Sec. 7.  Section 476.42, Code 1995, is amended by
  1 47 adding the following new subsection:
  1 48    NEW SUBSECTION.  5.  "Alternate energy" means
  1 49 electricity derived from hydro, solar, wind, methane
  1 50 recovery, agricultural crops or residues, or
  2  1 woodburning energy.
  2  2    Sec. 8.  Section 476.43, subsection 1, Code 1995,
  2  3 is amended to read as follows:
  2  4    1.  Subject to section 476.44, the board shall
  2  5 require electric utilities to enter into long-term
  2  6 contracts to do the following:
  2  7    a.  Purchase or wheel electricity from alternate
  2  8 energy production facilities or small hydro facilities
  2  9 located in the utility's service area under the terms
  2 10 and conditions that the board finds are just and
  2 11 economically reasonable to the electric utilities'
  2 12 ratepayers, are nondiscriminatory to alternate energy
  2 13 producers and small hydro producers and will further
  2 14 the policy stated in section 476.41.
  2 15    b.  Provide for the availability of supplemental or
  2 16 backup power to alternate energy production facilities
  2 17 or small hydro facilities on a nondiscriminatory basis
  2 18 and at just and reasonable rates.
  2 19    c.  If the parties fail to agree on the terms of a
  2 20 contract required pursuant to this section, a party
  2 21 may request that the board intervene.  The board shall
  2 22 have sixty days from the date of the intervention
  2 23 request to render a decision on the contract.
  2 24    Sec. 9.  Section 476.43, subsections 2, 3, and 4,
  2 25 Code 1995, are amended by striking the subsections and
  2 26 inserting in lieu thereof the following:
  2 27    2.  The board shall establish a uniform competitive
  2 28 bidding process so that an electric utility may
  2 29 acquire alternate energy at a just and economically
  2 30 based market rate.  An electric utility may produce
  2 31 its own alternate energy by constructing and operating
  2 32 an alternate energy production facility or small hydro
  2 33 facility if the facility is constructed and operated
  2 34 as a separate affiliate entity.  However, the electric
  2 35 utility shall participate in the competitive bidding
  2 36 process using a third-party evaluator.  A bid from an
  2 37 electric utility producing its own alternate energy
  2 38 shall not take into account regulated industry-based
  2 39 factors including eminent domain and transmission
  2 40 ownership in order to produce a lower cost bid.
  2 41    3.  Notwithstanding section 476.51, an electric
  2 42 utility which fails to comply with the requirements of
  2 43 subsection 1 shall be subject to a civil penalty,
  2 44 levied by the board, in an amount that is equivalent
  2 45 to three times the amount of the lowest bid filed with
  2 46 the board to comply with the requirements of
  2 47 subsection 1.  Civil penalties collected under this
  2 48 subsection shall be forwarded to the treasurer of
  2 49 state to be credited to the Iowa energy center.  Any
  2 50 moneys allocated to the Iowa energy center pursuant to
  3  1 this subsection shall be used solely for providing
  3  2 grants to nonprofit agencies for alternate energy
  3  3 production.  These penalties shall be excluded from
  3  4 the electric utility's costs when determining the
  3  5 electric utility's revenue requirement, and shall not
  3  6 be included either directly or indirectly in the
  3  7 electric utility's rates or charges to customers.
  3  8    4.  Notwithstanding subsection 2, alternate energy
  3  9 produced by recovery of methane at a sanitary landfill
  3 10 shall be purchased at the rate existing as of January
  3 11 1, 1996.
  3 12    Sec. 10.  Section 476.43, Code 1995, is amended by
  3 13 adding the following new subsection:
  3 14    NEW SUBSECTION.  7.  An electric utility purchasing
  3 15 alternate energy pursuant to this section shall be
  3 16 entitled to an alternate energy purchase tax credit.
  3 17 The electric utility shall reflect the tax credit
  3 18 received by the utility in the utility's automatic
  3 19 adjustment pursuant to section 476.6, subsection 11.
  3 20 The credit shall be equal to the difference between
  3 21 the rate established through the competitive bidding
  3 22 process and the rate that is equivalent to the true
  3 23 economic cost attributed to production of the
  3 24 electricity by the electric utility, as established by
  3 25 the board.  The board shall establish a true economic
  3 26 cost rate for purposes of the tax credit provided
  3 27 under section 422.51.  After January 1, 1997, this
  3 28 rate shall be based upon the conclusions of an
  3 29 independent study of the true economic value and cost
  3 30 of energy production.
  3 31    Sec. 11.  Section 476.44, subsection 1, Code 1995,
  3 32 is amended to by striking the subsection.
  3 33    Sec. 12.  Section 476.44, subsection 2, Code 1995,
  3 34 is amended to read as follows:
  3 35    2.  a.  An electric utility subject to this
  3 36 division, except a utility which elects rate
  3 37 regulation pursuant to section 476.1A, shall not be
  3 38 required to purchase, at any one time, more than its
  3 39 share of one two hundred five ten megawatts of power
  3 40 from alternative energy production facilities or small
  3 41 hydro facilities at the rates in accordance with the
  3 42 competitive bidding process established pursuant to
  3 43 section 476.43.  The board shall allocate the one two
  3 44 hundred five ten megawatts based upon each utility's
  3 45 percentage of the total Iowa retail peak demand, for
  3 46 the year beginning January 1, 1990, of all utilities
  3 47 subject to this section.  If a utility undergoes
  3 48 reorganization as defined in section 476.76, the board
  3 49 shall combine the allocated purchases of power for
  3 50 each utility involved in the reorganization.
  4  1    Notwithstanding the one two hundred five ten
  4  2 megawatt maximum, the board may increase the amount of
  4  3 power that a utility is required to purchase at the
  4  4 rates established pursuant to section 476.43 if the
  4  5 board finds that a utility, including a reorganized
  4  6 utility, exceeds its 1990 Iowa retail peak demand by
  4  7 twenty percent and the additional power the utility is
  4  8 required to purchase will encourage the development of
  4  9 alternate energy production facilities and small hydro
  4 10 facilities.  The increase shall not exceed the
  4 11 utility's increase in peak demand multiplied by the
  4 12 ratio of the utility's share of the one two hundred
  4 13 five ten megawatt maximum to its 1990 Iowa retail peak
  4 14 demand.
  4 15    b.  Of that portion of alternate energy required to
  4 16 be purchased by a utility under this section, eighty-
  4 17 five percent shall be purchased from alternate energy
  4 18 production facilities or small hydro facilities
  4 19 generating electricity with current and viable
  4 20 technologies and fifteen percent shall be purchased
  4 21 from alternate energy production facilities generating
  4 22 electricity from new technologies.  For purposes of
  4 23 this section, new technologies include only those
  4 24 technologies that use nonfossil fuel to derive
  4 25 renewable energy.
  4 26    Sec. 13.  TRUE ECONOMIC COST AND VALUE STUDY.  The
  4 27 Iowa utilities board and the office of the Consumer
  4 28 Advocate shall conduct an independent study of the
  4 29 true economic cost of generating electricity.  The
  4 30 report shall be sent to the general assembly by
  4 31 January 1, 1997.  The study shall include an economic
  4 32 analysis of electric utility rates and alternate
  4 33 energy production rates.  In addition to other
  4 34 relevant factors, a determination of a true economic
  4 35 rate shall consider the economic value of bringing the
  4 36 production of energy to the state versus the value of
  4 37 importing fossil fuels and the environmental impacts
  4 38 associated with energy production and use.  The study
  4 39 shall provide a definitive statement of a true
  4 40 economic rate.
  4 41    Sec. 14.  APPLICABILITY TO EXISTING CONTRACTS.
  4 42 This Act shall not affect the terms and conditions of
  4 43 any contract between an alternate energy production
  4 44 facility or small hydro facility and an electric
  4 45 utility that was entered into pursuant to sections
  4 46 476.43 and 476.44 for purchase of alternate energy if
  4 47 the contract was entered into prior to the effective
  4 48 date of this Act.""
  4 49    #2.  By renumbering as necessary.  
  4 50 
  5  1 
  5  2                              
  5  3 SHOULTZ of Black Hawk
  5  4 HF 2087.704 76
  5  5 js/sc
     
Text: H05441                            Text: H05443
Text: H05400 - H05499                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index
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