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Text: HF02247                           Text: HF02249
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House File 2248

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 476.1A, Code 1995, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  7.  Encouragement of alternate energy
  1  4 production and the purchase of alternate energy.
  1  5    Sec. 2.  Section 476.1A, unnumbered paragraph 3, Code 1995,
  1  6 is amended to read as follows:
  1  7    However, sections 476.20, 476.21, 476.41 through 476.44,
  1  8 476.51, 476.56, 476.62, and 476.66 and chapters 476A and 478,
  1  9 to the extent applicable, apply to such electric utilities.
  1 10    Sec. 3.  Section 476.1B, subsection 1, paragraph g, Code
  1 11 1995, is amended by striking the paragraph and inserting in
  1 12 lieu thereof the following:
  1 13    g.  Encouragement of alternate energy production and the
  1 14 purchase of alternate energy.
  1 15    Sec. 4.  Section 476.42, subsection 1, paragraph a, Code
  1 16 1995, is amended to read as follows:
  1 17    a.  A solar, wind turbine, waste management, resource
  1 18 methane recovery, refuse-derived fuel, agricultural crops or
  1 19 residues, or woodburning facility.
  1 20    Sec. 5.  Section 476.42, subsection 3, Code 1995, is
  1 21 amended by striking the subsection.
  1 22    Sec. 6.  Section 476.42, Code 1995, is amended by adding
  1 23 the following new subsection:
  1 24    NEW SUBSECTION.  5.  "Alternate energy" means electricity
  1 25 derived from hydro, solar, wind, methane recovery,
  1 26 agricultural crops or residues, or woodburning energy.
  1 27    Sec. 7.  Section 476.43, Code 1995, is amended by striking
  1 28 the section and inserting in lieu thereof the following:
  1 29    476.43  ALTERNATE ENERGY – RATES – PENALTIES.
  1 30    1.  a.  By December 31, 1997, an electric utility shall
  1 31 derive a minimum of two percent of the electric utility's
  1 32 annual peak demand from alternate energy sources.  By July 1,
  1 33 1999, an electric utility shall derive a minimum of five
  1 34 percent of the utility's annual peak demand from alternate
  1 35 energy sources.
  2  1    b.  A utility shall derive at least thirty percent of the
  2  2 utility's alternate energy generation, required under
  2  3 paragraph "a", from the following sources in the amounts as
  2  4 indicated:
  2  5    (1)  Ten percent shall be derived from dedicated energy
  2  6 crops grown within the state, fifty percent of which shall be
  2  7 from projects of five hundred kilowatts or less.
  2  8    (2)  Ten percent shall be derived from agricultural wastes
  2  9 produced from agricultural crops grown within the state, fifty
  2 10 percent of which shall be from projects of five hundred
  2 11 kilowatts or less.
  2 12    (3)  Ten percent shall be derived from small scale wind
  2 13 generation projects located within the state of two hundred
  2 14 fifty kilowatts or less.
  2 15    2.  The board shall establish a uniform competitive bidding
  2 16 process so that an electric utility may acquire alternate
  2 17 energy at a just and economically based market rate.  An
  2 18 electric utility may produce its own alternate energy by
  2 19 constructing and operating an alternate energy production
  2 20 facility or small hydro facility.  However, the electric
  2 21 utility shall participate in the competitive bidding process
  2 22 using a third-party evaluator.  A bid from an electric utility
  2 23 producing its own alternate energy shall not take into account
  2 24 regulated industry-based factors in order to produce a lower
  2 25 cost bid.  Regulated industry-based factors include eminent
  2 26 domain and transmission ownership.  An electric utility may
  2 27 combine with one or more electric utilities to construct and
  2 28 operate an alternate energy production facility or small hydro
  2 29 facility for purposes of this subsection.
  2 30    3.  Notwithstanding section 476.51, an electric utility
  2 31 which fails to comply with the requirements of subsection 1
  2 32 shall be subject to a civil penalty, levied by the board, in
  2 33 an amount that is equivalent to three times the amount of the
  2 34 lowest bid filed with the board to comply with the
  2 35 requirements of subsection 1.  Civil penalties collected under
  3  1 this subsection shall be forwarded to the treasurer of state
  3  2 to be credited to the general fund of the state to be used
  3  3 only for the alternate energy demonstration projects
  3  4 administered by the Iowa energy center.  These penalties shall
  3  5 be excluded from the electric utility's costs when determining
  3  6 the electric utility's revenue requirement, and shall not be
  3  7 included either directly or indirectly in the electric
  3  8 utility's rates or charges to customers.
  3  9    4.  If the state adopts a full and open competitive retail
  3 10 electric market, a retail electric supplier shall be
  3 11 prohibited from supplying electricity at retail in this state
  3 12 unless the retail supplier derives at least five percent of
  3 13 the supplier's energy supply from alternate energy sources.
  3 14    Sec. 8.  Section 476.44, Code 1995, is repealed.
  3 15    Sec. 9.  APPLICABILITY TO EXISTING CONTRACTS.  This Act
  3 16 shall not affect the terms and conditions of any contract
  3 17 between an alternate energy production facility or small hydro
  3 18 facility and an electric utility that was entered into
  3 19 pursuant to sections 476.43 and 476.44 for purchase of
  3 20 alternate energy if the contract was entered into prior to the
  3 21 effective date of this Act.  In addition, the Act shall not
  3 22 affect potential contracts between alternate energy production
  3 23 facilities and electric utilities if a petition relating to
  3 24 the potential contracts has been filed and an action is
  3 25 currently pending before the Iowa utilities board.  For
  3 26 purposes of the pending actions, the Iowa utilities board
  3 27 shall not take into account the changes contained in this Act.
  3 28    Sec. 10.  EFFECTIVE DATE.  This Act, being deemed of
  3 29 immediate importance, takes effect upon enactment.  
  3 30                           EXPLANATION
  3 31    The bill defines alternate energy to include hydro, solar,
  3 32 wind, methane recovery, agricultural crops or residues, or
  3 33 wood burning energy.  The bill strikes refuse-derived fuel and
  3 34 waste management from inclusion in the definition of alternate
  3 35 energy production facility.  This bill requires an electric
  4  1 utility to eventually derive a minimum of five percent of the
  4  2 utility's annual peak demand from alternate energy sources.
  4  3 The bill requires that by December 31, 1997, an electric
  4  4 utility must derive a minimum of two percent of the utility's
  4  5 annual peak demand from alternate energy sources and by July
  4  6 1, 1999, an electric utility must derive the full five
  4  7 percent.
  4  8    This bill requires a utility to derive at least 30 percent
  4  9 of the utility's required generation from the following
  4 10 sources and in the following amounts:
  4 11    a.  Ten percent from dedicated energy crops, 50 percent of
  4 12 which is from projects of 500 kilowatts or less.
  4 13    b.  Ten percent from agricultural wastes, 50 percent of
  4 14 which is from projects of 500 kilowatts or less.
  4 15    c.  Ten percent from small scale wind generation projects
  4 16 of 250 kilowatts or less.
  4 17    The Iowa utilities board is required to establish a uniform
  4 18 competitive bidding process so that an electric utility may
  4 19 acquire alternate energy at a just and economically based
  4 20 market rate.  The bill allows an electric utility to produce
  4 21 its own alternate energy by constructing and operating an
  4 22 alternate energy production facility, but requires the
  4 23 electric utility to participate in the competitive bidding
  4 24 process using a third-party evaluator.  The bill allows one or
  4 25 more electric utilities to combine together to produce
  4 26 alternate energy.
  4 27    The bill provides for the imposition of a civil penalty for
  4 28 an electric utility which fails to comply with this bill.  The
  4 29 penalty is equivalent to three times the amount of the lowest
  4 30 bid for which the electric utility could have purchased the
  4 31 alternate energy.  The civil penalties collected are to be
  4 32 used only for alternate energy demonstration projects
  4 33 administered by the Iowa energy center.  The penalties are
  4 34 excluded from the utility's costs when determining the
  4 35 utility's revenue requirement, and may not be included either
  5  1 directly or indirectly in the utility's rates or charges to
  5  2 customers.
  5  3    The bill requires that in the event the state adopts a full
  5  4 and open competitive retail electric market, a retail electric
  5  5 supplier shall be prohibited from supplying electricity at
  5  6 retail in this state unless the retail supplier derives at
  5  7 least five percent of the supplier's energy supply from
  5  8 alternate energy sources.
  5  9    This bill does not affect terms and conditions of current
  5 10 contracts between an alternate energy production facility or
  5 11 small hydro facility and an electric utility that were entered
  5 12 into for the purchase of alternate energy if the contract was
  5 13 entered into prior to the effective date of this bill.  In
  5 14 addition, the bill does not affect potential contracts between
  5 15 alternate energy production facilities and electric utilities
  5 16 if a petition relating to the potential contracts has been
  5 17 filed and an action is currently pending before the Iowa
  5 18 utilities board.
  5 19    The bill is effective upon enactment.  
  5 20 LSB 3892HH 76
  5 21 js/jj/8
     

Text: HF02247                           Text: HF02249
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