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PAG LIN
1 1 Section 1. Section 422.51, Code 1995, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 5. The taxes remitted pursuant to this
1 4 division shall be reduced by a methane energy purchase tax
1 5 credit. An electric utility which has purchased electricity
1 6 from a methane-producing sanitary landfill pursuant to a
1 7 contract entered into on or after July 1, 1995, under section
1 8 476.43 shall be granted the credit. The credit shall equal
1 9 the amount paid by the electric utility in excess of its
1 10 incremental cost. For purposes of this subsection,
1 11 "incremental cost" means the cost to the electric utility of
1 12 the electric energy which, but for the purchase from the
1 13 alternate energy production facility or small hydro facility,
1 14 the electric utility would have generated or purchased from
1 15 another source. The amount of the credit shall, in the first
1 16 instance, be determined by the electric utility, which shall
1 17 make a monthly report of such credits to the department,
1 18 deducting this credit from the periodic deposits of taxes due
1 19 under this division.
1 20 Sec. 2. Section 476.43, Code 1995, is amended by adding
1 21 the following new subsections:
1 22 NEW SUBSECTION. 7. Whenever a contract approved by the
1 23 board requires an electric utility to purchase electricity
1 24 from a methane-producing sanitary landfill pursuant to this
1 25 section, the electric utility shall be entitled to a methane
1 26 energy purchase tax credit as provided in section 422.51. The
1 27 electric utility shall reflect the methane energy purchase tax
1 28 credit received by the electric utility in the electric
1 29 utility's automatic adjustment pursuant to section 476.6,
1 30 subsection 11, to the extent its payments to the methane-
1 31 producing sanitary landfill, in excess of the incremental cost
1 32 of alternative electric energy, were included in the automatic
1 33 adjustment clause.
1 34 NEW SUBSECTION. 8. For purposes of this section,
1 35 "methane-producing sanitary landfill" means any electric
2 1 generating facility fueled by methane extracted from a
2 2 sanitary landfill.
2 3 Sec. 3. INTERIM STUDY. The legislative council is
2 4 requested to establish an interim study committee to review
2 5 the electricity purchase and wheeling requirements for
2 6 alternate energy production and small hydro facilities,
2 7 including a review of the rates for purchases established in
2 8 sections 476.41 through 476.44. The committee shall gather
2 9 information and hear testimony relating to alternate energy
2 10 production in other states and federal requirements and
2 11 initiatives concerning alternate energy. The committee shall
2 12 provide recommendations and long-range planning relating to
2 13 Iowa's future alternate energy policies. The committee shall
2 14 make its report to the general assembly no later than December
2 15 15, 1995.
2 16 Sec. 4. MORATORIUM. Commencing on the effective date of
2 17 this Act and ending April 15, 1996, the Iowa utilities board
2 18 shall not require electric utilities to enter into long-term
2 19 contracts to purchase or wheel electricity from alternate
2 20 energy production facilities or small hydro facilities.
2 21 Contracts between an electric utility and an alternate energy
2 22 production facility or small hydro facility in effect on the
2 23 effective date of this Act shall remain in effect, and the
2 24 Iowa utilities board shall continue to allow recovery of costs
2 25 incurred.
2 26 Sec. 5. This Act, being deemed of immediate importance,
2 27 takes effect upon enactment.
2 28 EXPLANATION
2 29 The bill provides a sales tax credit for an electric
2 30 utility which purchases electricity from a methane-producing
2 31 sanitary landfill in an amount equal to the amount paid by the
2 32 electric utility in excess of its incremental costs.
2 33 "Incremental cost" means the cost to the electric utility of
2 34 the electric energy which, but for the purchase from the
2 35 alternate energy production facility or small hydro facility,
3 1 the utility would generate or purchase from another source.
3 2 The bill places a moratorium from the effective date of the
3 3 Act until April 15, 1996, requiring electric utilities to
3 4 enter into long-term contracts to purchase alternate energy.
3 5 The bill provides that contacts existing as of the effective
3 6 date of the Act remain in effect. The bill also requests the
3 7 legislative council to establish an interim study committee to
3 8 review alternate energy purchasing requirements.
3 9 The bill is effective upon enactment.
3 10 LSB 2634HV 76
3 11 js/cf/24
Text: HF00566 Text: HF00568 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
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