Text: HF02247 Text: HF02249 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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, windturbine,waste management, resource1 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 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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