Text: S05150 Text: S05152 Text: S05100 - S05199 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 2221 as follows: 1 2 #1. By striking everything after the enacting 1 3 clause and inserting the following: 1 4 "Section 1. Section 422.51, Code 1995, is amended 1 5 by adding the following new subsection: 1 6 NEW SUBSECTION. 5. The taxes remitted pursuant to 1 7 this division shall be reduced by an alternate energy 1 8 purchase tax credit. An electric utility which has 1 9 purchased electricity from an alternate energy 1 10 production facility or small hydro facility pursuant 1 11 to section 476.43 shall be granted the credit. The 1 12 credit shall equal the difference between the 1 13 competitively bid rate that the utility paid for 1 14 purchase of the electricity and the rate which is 1 15 equivalent to the true economic cost attributed to 1 16 production of the electricity by the electric utility, 1 17 as established by the board pursuant to section 1 18 476.43. 1 19 Sec. 2. Section 476.1A, Code 1995, is amended by 1 20 adding the following new subsection: 1 21 NEW SUBSECTION. 7. Encouragement of alternate 1 22 energy production and the purchase of alternate 1 23 energy. 1 24 Sec. 3. Section 476.1A, unnumbered paragraph 3, 1 25 Code 1995, is amended to read as follows: 1 26 However, sections 476.20, 476.21,476.41 through1 27476.44,476.51, 476.56, 476.62, and 476.66 and 1 28 chapters 476A and 478, to the extent applicable, apply 1 29 to such electric utilities. 1 30 Sec. 4. Section 476.1B, subsection 1, paragraph g, 1 31 Code 1995, is amended by striking the paragraph and 1 32 inserting in lieu thereof the following: 1 33 g. Encouragement of alternate energy production 1 34 and the purchase of alternate energy. 1 35 Sec. 5. Section 476.42, subsection 1, paragraph a, 1 36 Code 1995, is amended to read as follows: 1 37 a. A solar, windturbine,waste management,1 38resourcemethane recovery,refuse-derived fuel,1 39 agricultural crops or residues, or woodburning 1 40 facility. 1 41 Sec. 6. Section 476.42, subsection 3, Code 1995, 1 42 is amended by striking the subsection. 1 43 Sec. 7. Section 476.42, Code 1995, is amended by 1 44 adding the following new subsection: 1 45 NEW SUBSECTION. 5. "Alternate energy" means 1 46 electricity derived from hydro, solar, wind, methane 1 47 recovery, agricultural crops or residues, or 1 48 woodburning energy. 1 49 Sec. 8. Section 476.43, subsection 1, Code 1995, 1 50 is amended to read as follows: 2 1 1. Subject to section 476.44, the board shall 2 2 require electric utilities to enter into long-term 2 3 contracts to do the following: 2 4 a. Purchase or wheel electricity from alternate 2 5 energy production facilities or small hydro facilities 2 6located in the utility's service areaundertheterms 2 7 and conditions that the board finds are just and 2 8 economically reasonable to the electric utilities' 2 9 ratepayers, are nondiscriminatory to alternate energy 2 10 producers and small hydro producers and will further 2 11 the policy stated in section 476.41. 2 12 b. Provide for the availability of supplemental or 2 13 backup power to alternate energy production facilities 2 14 or small hydro facilities on a nondiscriminatory basis 2 15 and at just and reasonable rates. 2 16 c. If the parties fail to agree on the terms of a 2 17 contract required pursuant to this section, a party 2 18 may request that the board intervene. The board shall 2 19 have sixty days from the date of the intervention 2 20 request to render a decision on the contract. 2 21 Sec. 9. Section 476.43, subsections 2, 3, and 4, 2 22 Code 1995, are amended by striking the subsections and 2 23 inserting in lieu thereof the following: 2 24 2. The board shall establish a uniform competitive 2 25 bidding process so that an electric utility may 2 26 acquire alternate energy at a just and economically 2 27 based market rate. An electric utility may produce 2 28 its own alternate energy by constructing and operating 2 29 an alternate energy production facility or small hydro 2 30 facility if the facility is constructed and operated 2 31 as a separate affiliate entity. However, the electric 2 32 utility shall participate in the competitive bidding 2 33 process using a third-party evaluator. A bid from an 2 34 electric utility producing its own alternate energy 2 35 shall not take into account regulated industry-based 2 36 factors including eminent domain and transmission 2 37 ownership in order to produce a lower cost bid. 2 38 3. Notwithstanding section 476.51, an electric 2 39 utility which fails to comply with the requirements of 2 40 subsection 1 shall be subject to a civil penalty, 2 41 levied by the board, in an amount that is equivalent 2 42 to three times the amount of the lowest bid filed with 2 43 the board to comply with the requirements of 2 44 subsection 1. Civil penalties collected under this 2 45 subsection shall be forwarded to the treasurer of 2 46 state to be credited to the Iowa energy center. Any 2 47 moneys allocated to the Iowa energy center pursuant to 2 48 this subsection shall be used solely for providing 2 49 grants to nonprofit agencies for alternate energy 2 50 production. These penalties shall be excluded from 3 1 the electric utility's costs when determining the 3 2 electric utility's revenue requirement, and shall not 3 3 be included either directly or indirectly in the 3 4 electric utility's rates or charges to customers. 3 5 4. Notwithstanding subsection 2, alternate energy 3 6 produced by recovery of methane at a sanitary landfill 3 7 shall be purchased at the rate existing as of January 3 8 1, 1996. 3 9 Sec. 10. Section 476.43, Code 1995, is amended by 3 10 adding the following new subsection: 3 11 NEW SUBSECTION. 7. An electric utility purchasing 3 12 alternate energy pursuant to this section shall be 3 13 entitled to an alternate energy purchase tax credit. 3 14 The electric utility shall reflect the tax credit 3 15 received by the utility in the utility's automatic 3 16 adjustment pursuant to section 476.6, subsection 11. 3 17 The credit shall be equal to the difference between 3 18 the rate established through the competitive bidding 3 19 process and the rate that is equivalent to the true 3 20 economic cost attributed to production of the 3 21 electricity by the electric utility, as established by 3 22 the board. The board shall establish a true economic 3 23 cost rate for purposes of the tax credit provided 3 24 under section 422.51. After January 1, 1997, this 3 25 rate shall be based upon the conclusions of an 3 26 independent study of the true economic value and cost 3 27 of energy production. 3 28 Sec. 11. Section 476.44, subsection 1, Code 1995, 3 29 is amended to by striking the subsection. 3 30 Sec. 12. Section 476.44, subsection 2, Code 1995, 3 31 is amended to read as follows: 3 32 2. a. An electric utility subject to this 3 33 division, except a utility which elects rate 3 34 regulation pursuant to section 476.1A, shallnotbe 3 35 required to purchase, at any one time, more thanits 3 36 share ofonetwo hundredfiveten megawatts of power 3 37 from alternative energy production facilities or small 3 38 hydro facilitiesat the ratesin accordance with the 3 39 competitive bidding process established pursuant to 3 40 section 476.43. The board shall allocate theonetwo 3 41 hundredfiveten megawatts based upon each utility's 3 42 percentage of the total Iowa retail peak demand, for 3 43 the year beginning January 1, 1990, of all utilities 3 44 subject to this section. If a utility undergoes 3 45 reorganization as defined in section 476.76, the board 3 46 shall combine the allocated purchases of power for 3 47 each utility involved in the reorganization. 3 48 Notwithstanding theonetwo hundredfiveten 3 49 megawatt maximum, the board may increase the amount of 3 50 power that a utility is required to purchaseat the4 1rates established pursuant to section 476.43if the 4 2 board finds that a utility, including a reorganized 4 3 utility, exceeds its 1990 Iowa retail peak demand by 4 4 twenty percent and the additional power the utility is 4 5 required to purchase will encourage the development of 4 6 alternate energy production facilities and small hydro 4 7 facilities. The increase shall not exceed the 4 8 utility's increase in peak demand multiplied by the 4 9 ratio of the utility's share of theonetwo hundred 4 10fiveten megawatt maximum to its 1990 Iowa retail peak 4 11 demand. 4 12 b. Of that portion of alternate energy required to 4 13 be purchased by a utility under this section, eighty- 4 14 five percent shall be purchased from alternate energy 4 15 production facilities or small hydro facilities 4 16 generating electricity with current and viable 4 17 technologies and fifteen percent shall be purchased 4 18 from alternate energy production facilities generating 4 19 electricity from new technologies. For purposes of 4 20 this section, new technologies include only those 4 21 technologies that use nonfossil fuel to derive 4 22 renewable energy. 4 23 Sec. 13. TRUE ECONOMIC COST AND VALUE STUDY. The 4 24 Iowa utilities board and the office of the Consumer 4 25 Advocate shall conduct an independent study of the 4 26 true economic cost of generating electricity. The 4 27 report shall be sent to the general assembly by 4 28 January 1, 1997. The study shall include an economic 4 29 analysis of electric utility rates and alternate 4 30 energy production rates. In addition to other 4 31 relevant factors, a determination of a true economic 4 32 rate shall consider the economic value of bringing the 4 33 production of energy to the state versus the value of 4 34 importing fossil fuels and the environmental impacts 4 35 associated with energy production and use. The study 4 36 shall provide a definitive statement of a true 4 37 economic rate. 4 38 Sec. 14. APPLICABILITY TO EXISTING CONTRACTS. 4 39 This Act shall not affect the terms and conditions of 4 40 any contract between an alternate energy production 4 41 facility or small hydro facility and an electric 4 42 utility that was entered into pursuant to sections 4 43 476.43 and 476.44 for purchase of alternate energy if 4 44 the contract was entered into prior to the effective 4 45 date of this Act." 4 46 4 47 4 48 4 49 COMMITTEE ON NATURAL RESOURCES, 4 50 ENERGY, AND ENVIRONMENT 5 1 BILL FINK, Chairperson 5 2 SF 2221.201 76 5 3 js/jj
Text: S05150 Text: S05152 Text: S05100 - S05199 Text: S Index Bills and Amendments: General Index Bill History: General Index
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