Text: S05607 Text: S05609 Text: S05600 - S05699 Text: S Index Bills and Amendments: General Index Bill History: General Index
Get Version To Print
PAG LIN 1 1 Amend Senate File 2370 as follows: 1 2 #1. Page 1, by inserting before line 1 the 1 3 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 per kilowatt hour that the 1 14 utility paid for purchase of the electricity and the 1 15 rate which is equivalent to the utility's total annual 1 16 average cost per kilowatt hour of electricity for the 1 17 year prior to the year in which the utility entered 1 18 into the contract for purchase of the alternate 1 19 energy. A utility's total annual average cost per 1 20 kilowatt hour shall be calculated by dividing annual 1 21 operating expenses by the total annual number of 1 22 kilowatt hours sold. This difference shall be used to 1 23 determine the alternate energy purchase tax credit for 1 24 the remainder of the term of the contract. The tax 1 25 credit shall not be less than zero." 1 26 #2. Page 1, by inserting after line 19 the 1 27 following: 1 28 "Sec. . Section 476.1A, Code 1995, is amended 1 29 by adding the following new subsection: 1 30 NEW SUBSECTION. 7. Encouragement of alternate 1 31 energy production and the purchase of alternate 1 32 energy." 1 33 #3. Page 1, by inserting after line 26 the 1 34 following: 1 35 "Sec. . Section 476.1A, unnumbered paragraph 3, 1 36 Code 1995, is amended to read as follows: 1 37 However, sections 476.20, 476.21,476.41 through1 38476.44,476.51, 476.56, 476.62, and 476.66 and 1 39 chapters 476A and 478, to the extent applicable, apply 1 40 to such electric utilities. 1 41 Sec. . Section 476.1B, subsection 1, paragraph 1 42 g, Code 1995, is amended by striking the paragraph and 1 43 inserting in lieu thereof the following: 1 44 g. Encouragement of alternate energy production 1 45 and the purchase of alternate energy." 1 46 #4. Page 4, by inserting after line 20 the 1 47 following: 1 48 "Sec. . Section 476.6, Code 1995, is amended by 1 49 adding the following new subsection: 1 50 NEW SUBSECTION. 22. ALTERNATE ENERGY PROMOTIONAL 2 1 RATES. The board shall require that electric 2 2 utilities offer to their customers the opportunity to 2 3 pay, on a voluntary basis, an alternate energy 2 4 promotional rate. This rate shall exceed the rate for 2 5 electricity otherwise payable and shall be designed 2 6 and encouraged by the electric utility to maximize 2 7 voluntary financial support for alternate energy 2 8 production. The alternate energy promotional rate 2 9 shall be filed as a tariff with the board pursuant to 2 10 section 476.4. Retaining only amounts approved by the 2 11 board for its administrative and marketing costs, the 2 12 electric utility shall remit that portion of the 2 13 electric rate attributable to the alternate energy 2 14 promotional rate to the state treasurer to be 2 15 allocated to the general fund of the state to offset 2 16 the cost of the alternate energy purchase tax credit 2 17 under section 422.51." 2 18 #5. Page 5, by inserting after line 18 the 2 19 following: 2 20 "Sec. . Section 476.42, subsection 1, paragraph 2 21 a, Code 1995, is amended to read as follows: 2 22 a. A solar, windturbine,waste management,2 23resourcemethane recovery,refuse-derived fuel,2 24 agricultural crops or residues, or woodburning 2 25 facility. 2 26 Sec. . Section 476.42, subsection 3, Code 1995, 2 27 is amended by striking the subsection. 2 28 Sec. . Section 476.42, subsection 4, paragraph 2 29 a, Code 1995, is amended to read as follows: 2 30 a. A hydroelectric facility at a dam located 2 31 within this state. 2 32 Sec. . Section 476.42, Code 1995, is amended by 2 33 adding the following new subsection: 2 34 NEW SUBSECTION. 5. "Alternate energy" means 2 35 electricity derived from hydro, solar, wind, methane 2 36 recovery, agricultural crops or residues, or 2 37 woodburning energy. 2 38 Sec. . Section 476.43, subsection 1, Code 1995, 2 39 is amended to read as follows: 2 40 1. Subject to section 476.44, the board shall 2 41 require electric utilities to enter into long-term 2 42 contracts to do the following: 2 43 a. Purchase or wheel electricity from alternate 2 44 energy production facilities or small hydro facilities 2 45located in the utility's service areaundertheterms 2 46 and conditions that the board finds are just and 2 47 economically reasonable to the electric utilities' 2 48 ratepayers, are nondiscriminatory to alternate energy 2 49 producers and small hydro producers and will further 2 50 the policy stated in section 476.41. 3 1 b. Provide for the availability of supplemental or 3 2 backup power to alternate energy production facilities 3 3 or small hydro facilities on a nondiscriminatory basis 3 4 and at just and reasonable rates. 3 5 c. If the parties fail to agree on the terms of a 3 6 contract required pursuant to this section, a party 3 7 may request that the board intervene. The board shall 3 8 have sixty days from the date of the intervention 3 9 request to render a decision on the contract. 3 10 Sec. . Section 476.43, subsections 2, 3, and 4, 3 11 Code 1995, are amended by striking the subsections and 3 12 inserting in lieu thereof the following: 3 13 2. The board shall establish a uniform competitive 3 14 bidding process so that an electric utility shall 3 15 acquire alternate energy at a just and economically 3 16 based market rate. An alternate energy contract shall 3 17 require that the utility pay the competitive bid rate 3 18 to the facility during the contract term. The 3 19 kilowatt per hour competitive bid rate shall not be 3 20 less than the annual average rate of off-peak kilowatt 3 21 per hour rates and peak kilowatt per hour rates at 3 22 which an electric utility would have had to purchase 3 23 the power. An electric utility may produce its own 3 24 alternate energy by constructing and operating an 3 25 alternate energy production facility or small hydro 3 26 facility if the facility is constructed and operated 3 27 as a separate affiliate entity. However, the electric 3 28 utility shall participate in the competitive bidding 3 29 process using a third-party evaluator. A bid from an 3 30 electric utility producing its own alternate energy 3 31 shall not take into account regulated industry-based 3 32 factors including, but not limited to, eminent domain 3 33 and transmission ownership in order to produce a lower 3 34 cost bid. 3 35 3. Notwithstanding section 476.51, an electric 3 36 utility which fails to comply with the requirements of 3 37 subsection 1 or which obstructs the policy of this 3 38 state as stated in section 476.41 shall be subject to 3 39 a civil penalty, levied by the board, in an amount 3 40 that is equivalent to three times the total project 3 41 capital cost of the lowest bid filed with the board to 3 42 comply with the requirements of subsection 1. Civil 3 43 penalties collected under this subsection shall be 3 44 forwarded to the treasurer of state to be credited to 3 45 the Iowa energy center. Any moneys allocated to the 3 46 Iowa energy center pursuant to this subsection shall 3 47 be used solely for providing grants to nonprofit 3 48 agencies for alternate energy production. These 3 49 penalties shall be excluded from the electric 3 50 utility's costs when determining the electric 4 1 utility's revenue requirement, and shall not be 4 2 included either directly or indirectly in the electric 4 3 utility's rates or charges to customers. 4 4 4. Notwithstanding subsection 2, alternate energy 4 5 produced by recovery of methane at a sanitary landfill 4 6 shall be purchased at the rate existing as of January 4 7 1, 1996. 4 8 Sec. . Section 476.43, Code 1995, is amended by 4 9 adding the following new subsection: 4 10 NEW SUBSECTION. 7. An electric utility purchasing 4 11 alternate energy pursuant to this section shall be 4 12 entitled to an alternate energy purchase tax credit. 4 13 The electric utility shall reflect the tax credit 4 14 received by the utility in the utility's automatic 4 15 adjustment pursuant to section 476.6, subsection 11. 4 16 The credit shall be equal to the difference between 4 17 the kilowatt hour rate established through the 4 18 competitive bidding process and the rate that is 4 19 equivalent to the utility's total annual average cost 4 20 per kilowatt hour of electricity for the year prior to 4 21 the year in which the utility entered into the 4 22 contract for purchase of the alternate energy as 4 23 determined under section 422.51, subsection 5. 4 24 Sec. . Section 476.44, subsection 1, Code 1995, 4 25 is amended by striking the subsection. 4 26 Sec. . Section 476.44, subsection 2, Code 1995, 4 27 is amended to read as follows: 4 28 2. a. An electric utility subject to this 4 29 division, except a utility which elects rate 4 30 regulation pursuant to section 476.1A, shallnotbe 4 31 required to purchase, at any one time, more thanits 4 32 share ofonetwo hundredfiveten megawatts of power 4 33 from alternative energy production facilities or small 4 34 hydro facilitiesat the ratesin accordance with the 4 35 competitive bidding process established pursuant to 4 36 section 476.43 and pursuant to timelines established 4 37 under paragraph "c". For purposes of this section, 4 38 "megawatt" shall be determined in accordance with a 4 39 utility's average capacity. "Average capacity" means 4 40 a utility's total output over a year divided by the 4 41 number of hours in the year. The board shall allocate 4 42 theonetwo hundredfiveten megawatts based upon each 4 43 utility's percentage of the total Iowa retail peak 4 44 demand, for the year beginning January 1, 1990, of all 4 45 utilities subject to this section. If a utility 4 46 undergoes reorganization as defined in section 476.76, 4 47 the board shall combine the allocated purchases of 4 48 power for each utility involved in the reorganization. 4 49 Notwithstanding theonetwo hundredfiveten 4 50 megawatt maximum, the board may increase the amount of 5 1 power that a utility is required to purchaseat the5 2rates established pursuant to section 476.43if the 5 3 board finds that a utility, including a reorganized 5 4 utility, exceeds its 1990 Iowa retail peak demand by 5 5 twenty percent and the additional power the utility is 5 6 required to purchase will encourage the development of 5 7 alternate energy production facilities and small hydro 5 8 facilities. The increase shall not exceed the 5 9 utility's increase in peak demand multiplied by the 5 10 ratio of the utility's share of theonetwo hundred 5 11fiveten megawatt maximum to its 1990 Iowa retail peak 5 12 demand. 5 13 b. Of that portion of alternate energy required to 5 14 be purchased by a utility under this section, eighty- 5 15 five percent shall be purchased from alternate energy 5 16 production facilities or small hydro facilities 5 17 generating electricity with current and viable 5 18 technologies and fifteen percent shall be purchased 5 19 from alternate energy production facilities generating 5 20 electricity from new technologies. The board shall 5 21 provide for a minimum of thirty percent of the eighty- 5 22 five percent required purchase of alternate energy 5 23 under this paragraph to be purchased from small hydro 5 24 facilities. Of the eighty-five percent, thirty 5 25 percent shall be purchased in accordance with the 5 26 following: 5 27 (1) At least ten percent shall be from dedicated 5 28 energy crops grown within the state, fifty percent of 5 29 which shall be from projects of five hundred kilowatts 5 30 or less. 5 31 (2) At least ten percent shall be from 5 32 agricultural wastes produced from agricultural crops 5 33 grown within the state, fifty percent of which shall 5 34 be from projects of five hundred kilowatts or less. 5 35 (3) At least ten percent shall be from small scale 5 36 wind generation projects located within the state of 5 37 two hundred fifty kilowatts or less. 5 38 c. By December 31, 1997, the board shall require 5 39 an electric utility to enter into contracts for the 5 40 purchase of the utility's allotted share of eighty- 5 41 nine megawatts of electricity generated from alternate 5 42 energy production facilities, and by July 1, 1999, the 5 43 board shall require the utility to enter into 5 44 contracts for the purchase of the utility's allotted 5 45 share of an additional one hundred five megawatts. 5 46 For purposes of this section, new technologies include 5 47 only those technologies that use nonfossil fuel to 5 48 derive renewable energy." 5 49 #6. Page 7, by inserting after line 2 the 5 50 following: 6 1 "Sec. . APPLICABILITY TO EXISTING CONTRACTS. 6 2 The provisions of this Act relating to alternate 6 3 energy shall not affect the terms and conditions of 6 4 any contract between an alternate energy production 6 5 facility or small hydro facility and an electric 6 6 utility that was entered into pursuant to sections 6 7 476.43 and 476.44 for purchase of alternate energy if 6 8 the contract was entered into prior to the effective 6 9 date of this Act. In addition, this Act shall not 6 10 affect potential contracts between alternate energy 6 11 production facilities and electric utilities if a 6 12 petition relating to the potential contracts has been 6 13 filed by January 1, 1996, and an action is currently 6 14 pending before the Iowa utilities board. For purposes 6 15 of the pending actions, the Iowa utilities board shall 6 16 not take into account the changes contained in this 6 17 Act. 6 18 Sec. . It is the intent of the general assembly 6 19 that persons who have proceeded in good faith under 6 20 the terms and conditions of sections 476.43 and 6 21 476.44, prior to their amendment by this Act, not 6 22 suffer economic loss as a result of this Act. These 6 23 persons shall be reimbursed by the utilities for their 6 24 reasonable good faith development costs as determined 6 25 by the Iowa utilities board." 6 26 #7. Title page, line 1, by inserting after the 6 27 word "efficiency" the following: "and alternate 6 28 energy". 6 29 #8. Title page, line 4, by inserting after the 6 30 word "research" the following: "and providing an 6 31 applicability provision". 6 32 #9. By renumbering as necessary. 6 33 6 34 6 35 6 36 BILL FINK 6 37 MARY LOU FREEMAN 6 38 MARY A. LUNDBY 6 39 RODNEY HALVORSON 6 40 BERL E. PRIEBE 6 41 ROBERT E. DVORSKY 6 42 MIKE CONNOLLY 6 43 ALLEN BORLAUG 6 44 SF 2370.505 76 6 45 js/jw
Text: S05607 Text: S05609 Text: S05600 - S05699 Text: S Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Fri Mar 29 03:25:33 CST 1996
URL: /DOCS/GA/76GA/Legislation/S/05600/S05608/960328.html
jhf