Text: HSB00326 Text: HSB00328 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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 section 1 7 476.43 shall be granted the credit. The credit shall equal 1 8 the amount paid by the electric utility in excess of its 1 9 incremental cost as defined in section 476.43A, subsection 2. 1 10 The amount of the credit shall, in the first instance, be 1 11 determined by the electric utility, which shall make a monthly 1 12 report of such credits to the Iowa utilities board and the 1 13 department, deducting this credit from the periodic deposits 1 14 of taxes due under this division. If the department disputes 1 15 the amount of any such credit, such disputes shall be resolved 1 16 by the Iowa utilities board. 1 17 Sec. 2. Section 476.1A, unnumbered paragraph 3, Code 1995, 1 18 is amended to read as follows: 1 19 However, sections 476.20, 476.21,476.41 through 476.441 20 476.42, 476.43, 476.43A, 476.51, 476.56, 476.62, and 476.66 1 21 and chapters 476A and 478, to the extent applicable, apply to 1 22 such electric utilities. 1 23 Sec. 3. Section 476.1B, subsection 1, paragraph g, Code 1 24 1995, is amended to read as follows: 1 25 g. Encouragement of alternate energy production 1 26 facilities, as set forth in sections476.41 through476.42, 1 27 476.43, 476.43A, and 476.45. 1 28 Sec. 4. Section 476.42, subsection 1, Code 1995, is 1 29 amended by adding the following new unnumbered paragraph: 1 30 NEW UNNUMBERED PARAGRAPH. An alternate energy production 1 31 facility does not include a methane-producing sanitary 1 32 landfill. 1 33 Sec. 5. Section 476.42, subsection 3, Code 1995, is 1 34 amended by striking the subsection. 1 35 Sec. 6. Section 476.43, Code 1995, is amended to read as 2 1 follows: 2 2 476.43 RATES FORALTERNATE ENERGY PRODUCTION FACILITIES2 3 METHANE-PRODUCING SANITARY LANDFILLS. 2 4 1.Subject to section 476.44, theThe board shall require 2 5 electric utilities to enter into long-term contracts to do the 2 6 following: 2 7 a. Purchase or wheel electricity fromalternate energy2 8production facilities or small hydro facilitiesmethane- 2 9 producing sanitary landfills located in the utility's service 2 10 area under the terms and conditions that the board finds are 2 11 just and economically reasonable to the electric utilities' 2 12 ratepayers,and are nondiscriminatory toalternate energy2 13producers and small hydro producers and will further the2 14policy stated in section 476.41methane-producing sanitary 2 15 landfills. 2 16 b. Provide for the availability of supplemental or backup 2 17 power toalternate energy production facilities or small hydro2 18facilitiesmethane-producing sanitary landfills on a 2 19 nondiscriminatory basis and at just and reasonable rates. 2 20 2. Upon application by the owner or operator ofan2 21alternate energy production facility or small hydro facility2 22or any interested party,a methane-producing sanitary landfill 2 23 the board shall establish for the affected public utility just 2 24 and economically reasonable rates for electricity purchased 2 25 under subsection 1, paragraph "a". The rates shall be 2 26 established at levels sufficient to stimulate the development 2 27 ofalternate energy production and small hydro facilities2 28 electricity generated from methane production in a sanitary 2 29 landfill in Iowa and to encourage the continuation of existing 2 30 capacity from thosefacilitieslandfills. 2 31 3. The board may adopt individual utility or uniform 2 32 statewide facility rates. The board shall consider the 2 33 following factors in setting individual or uniform rates: 2 34 a. The estimated capital cost of the next generating 2 35 plant, including related transmission facilities, to be placed 3 1 in service by the electric utility serving the area. 3 2 b. The term of the contract between the electric utility 3 3 and the seller. 3 4 c. A levelized annual carrying charge based upon the term 3 5 of the contract and determined in a manner consistent with 3 6 both the methods and the current interest or return 3 7 requirements associated with the electric utility's new 3 8 construction program. 3 9 d. The electric utility's annual energy costs, including 3 10 current fuel costs, related operation and maintenance costs, 3 11 and other energy-related costs considered appropriate by the 3 12 board. 3 13 e. External factors, including but not limited to, 3 14 environmental and economic factors. 3 15 f. Other relevant factors. 3 16 g. If the board adopts uniform statewide rates, the board 3 17 shall use representative data in lieu of utility specific 3 18 information in applying the factors listed in paragraphs "a" 3 19 through "f". 3 20 4. In the case of a utility that purchases all or 3 21 substantially all of its electricity requirements, the rates 3 22 established under this section must be based on the electric 3 23 utility's current purchased power costs. 3 24 5. In lieu of the other procedures provided by this 3 25 section, an electric utility and an owner or operator ofan3 26alternate energy production facility or small hydro facilitya 3 27 methane-producing sanitary landfill may enter into a long-term 3 28 contract in accordance with subsection 1 and may agree to 3 29 rates for purchase and sale transactions. A contract entered 3 30 into under this subsection must be filed with the board in the 3 31 manner provided for tariffs under section 476.4. 3 32 6. This section does not require an electric utility to 3 33 construct additional facilities unless those facilities are 3 34 paid for by the owner or operator of theaffected alternate3 35energy production facility or small hydro facilitymethane- 4 1 producing sanitary landfill. 4 2 7. Whenever a contract approved by the board requires an 4 3 electric utility to purchase electricity from a methane- 4 4 producing sanitary landfill pursuant to this section, the 4 5 electric utility shall be entitled to a methane energy 4 6 purchase tax credit as provided in section 422.51. The 4 7 electric utility shall reflect the methane energy purchase tax 4 8 credit received by the electric utility in the electric 4 9 utility's automatic adjustment pursuant to section 476.6, 4 10 subsection 11, to the extent its payments to the methane- 4 11 producing sanitary landfill, in excess of the incremental cost 4 12 of alternative electric energy, were included in the automatic 4 13 adjustment clause. 4 14 8. For purposes of this section, "methane-producing 4 15 sanitary landfill" means any electric generating facility 4 16 fueled by methane extracted from a sanitary landfill. 4 17 Sec. 7. NEW SECTION. 476.43A RATES FOR ALTERNATE ENERGY 4 18 PRODUCTION FACILITIES OR SMALL HYDRO FACILITIES. 4 19 1. The board shall require electric utilities to enter 4 20 into long-term contracts to purchase electric energy from 4 21 alternate energy production facilities or small hydro 4 22 facilities. 4 23 2. The rates for purchases under this section shall not 4 24 exceed the incremental costs to the electric utility of 4 25 alternative electric energy. For purposes of this section 4 26 "incremental cost" means the cost to the electric utility of 4 27 the electric energy which, but for the purchase from the 4 28 alternate energy production facility or small hydro facility, 4 29 the electric utility would have generated or purchased from 4 30 another source. 4 31 3. In the case of a utility that purchases all or 4 32 substantially all of its electricity requirements, the rates 4 33 established under this section must be based on the electric 4 34 utility's current purchased power costs. 4 35 4. In lieu of the other procedures provided by this 5 1 section, an electric utility and an owner or operator of an 5 2 alternate energy production facility or small hydro facility 5 3 may enter into a long-term contract in accordance with 5 4 subsection 1 and may agree to rates for purchase and sale 5 5 transactions. A contract entered into under this subsection 5 6 must be filed with the board in the manner provided for 5 7 tariffs under section 476.4. 5 8 5. This section does not require an electric utility to 5 9 construct additional facilities unless those facilities are 5 10 paid for by the owner or operator of the affected alternate 5 11 energy production facility or small hydro facility. 5 12 Sec. 8. Sections 476.41 and 476.44, Code 1995, are 5 13 repealed. 5 14 Sec. 9. Notwithstanding the provisions of this Act, the 5 15 Iowa utilities board shall continue to allow, until the 5 16 termination of contracts between an electric utility and an 5 17 alternate energy production facility or a small hydro facility 5 18 in effect on the effective date of this Act, the recovery of 5 19 costs incurred. 5 20 Sec. 10. This Act, being deemed of immediate importance, 5 21 takes effect upon enactment. 5 22 EXPLANATION 5 23 This bill strikes the existing procedure for determining 5 24 rates for purchase of alternate energy except for methane 5 25 produced from a sanitary landfill and replaces it with similar 5 26 provisions which are used for determining rates for non-rate- 5 27 regulated electric utilities under federal law. The bill 5 28 directs the utilities board that the rates for purchase of 5 29 alternate energy cannot exceed the incremental costs to the 5 30 electric utility of alternative electric energy. For purposes 5 31 of the bill, "incremental cost" means the cost to the electric 5 32 utility of the electric energy which, but for the purchase 5 33 from the alternate energy production facility or small hydro 5 34 facility, the utility would generate or purchase from another 5 35 source. 6 1 The bill provides a sales tax credit for an electric 6 2 utility which purchases electricity from a methane-producing 6 3 sanitary landfill in an amount equal to the amount paid by the 6 4 electric utility in excess of its incremental costs. 6 5 In addition the bill repeals section 476.41 which declares 6 6 that it is the policy of the state to encourage development of 6 7 alternate energy production facilities and small hydro 6 8 facilities. It also repeals section 476.44 which requires 6 9 that investor-owned electric utilities must purchase shares of 6 10 105 megawatts of power from an alternate energy production 6 11 facility or a small hydro facility. 6 12 The bill directs the utilities board to continue to allow 6 13 the recovery of costs incurred until contracts are terminated 6 14 between an electric utility and an alternate energy production 6 15 facility or small hydro facility. 6 16 The bill is effective upon enactment. 6 17 LSB 2634HC 76 6 18 js/cf/24
Text: HSB00326 Text: HSB00328 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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