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Text: S05750                            Text: S05752
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Senate Amendment 5751

Amendment Text

PAG LIN
  1  1    Amend Senate File 2370 as follows:
  1  2    #1.  Page 1, by inserting after line 19 the
  1  3 following:
  1  4    "Sec.    .  Section 476.1A, Code 1995, is amended
  1  5 by adding the following new subsection:
  1  6    NEW SUBSECTION.  7.  Encouragement of alternate
  1  7 energy production and the purchase of alternate
  1  8 energy."
  1  9    #2.  Page 1, by inserting after line 26 the
  1 10 following:
  1 11    "Sec.    .  Section 476.1A, unnumbered paragraph 3,
  1 12 Code 1995, is amended to read as follows:
  1 13    However, sections 476.20, 476.21, 476.41 through
  1 14 476.44, 476.51, 476.56, 476.62, and 476.66 and
  1 15 chapters 476A and 478, to the extent applicable, apply
  1 16 to such electric utilities.
  1 17    Sec.    .  Section 476.1B, subsection 1, paragraph
  1 18 g, Code 1995, is amended by striking the paragraph and
  1 19 inserting in lieu thereof the following:
  1 20    g.  Encouragement of alternate energy production
  1 21 and the purchase of alternate energy."
  1 22    #3.  Page 4, by inserting after line 20 the
  1 23 following:
  1 24    "Sec.    .  Section 476.6, Code 1995, is amended by
  1 25 adding the following new subsection:
  1 26    NEW SUBSECTION.  22.   ALTERNATE ENERGY PROMOTIONAL
  1 27 RATES.  The board shall require that electric
  1 28 utilities offer to their customers the opportunity to
  1 29 pay, on a voluntary basis, an alternate energy
  1 30 promotional rate.  This rate shall exceed the rate for
  1 31 electricity otherwise payable and shall be designed
  1 32 and encouraged by the electric utility to maximize
  1 33 voluntary financial support for alternate energy
  1 34 production.  The alternate energy promotional rate
  1 35 shall be filed as a tariff with the board pursuant to
  1 36 section 476.4.  Retaining only amounts approved by the
  1 37 board for its administrative and marketing costs, the
  1 38 electric utility shall remit that portion of the
  1 39 electric rate attributable to the alternate energy
  1 40 promotional rate to the state treasurer to be
  1 41 allocated to the general fund of the state."
  1 42    #4.  Page 5, by inserting after line 18 the
  1 43 following:
  1 44    "Sec.    .  Section 476.42, subsection 1, paragraph
  1 45 a, Code 1995, is amended to read as follows:
  1 46    a.  A solar, wind turbine, waste management,
  1 47 resource methane recovery, refuse-derived fuel,
  1 48 agricultural crops or residues, or woodburning
  1 49 facility.
  1 50    Sec.    .  Section 476.42, subsection 3, Code 1995,
  2  1 is amended by striking the subsection.
  2  2    Sec.    .  Section 476.42, subsection 4, paragraph
  2  3 a, Code 1995, is amended to read as follows:
  2  4    a.  A hydroelectric facility at a dam located
  2  5 within this state.
  2  6    Sec.    .  Section 476.42, Code 1995, is amended by
  2  7 adding the following new subsection:
  2  8    NEW SUBSECTION.  5.  "Alternate energy" means
  2  9 electricity derived from hydro, solar, wind, methane
  2 10 recovery, agricultural crops or residues, or
  2 11 woodburning energy.
  2 12    Sec.    .  Section 476.43, subsection 1, Code 1995,
  2 13 is amended to read as follows:
  2 14    1.  Subject to section 476.44, the board shall
  2 15 require electric utilities to enter into long-term
  2 16 contracts to do the following:
  2 17    a.  Purchase or wheel electricity from alternate
  2 18 energy production facilities or small hydro facilities
  2 19 located in the utility's service area under the terms
  2 20 and conditions that the board finds are just and
  2 21 economically reasonable to the electric utilities'
  2 22 ratepayers, are nondiscriminatory to alternate energy
  2 23 producers and small hydro producers and will further
  2 24 the policy stated in section 476.41.
  2 25    b.  Provide for the availability of supplemental or
  2 26 backup power to alternate energy production facilities
  2 27 or small hydro facilities on a nondiscriminatory basis
  2 28 and at just and reasonable rates.
  2 29    c.  If the parties fail to agree on the terms of a
  2 30 contract required pursuant to this section, a party
  2 31 may request that the board intervene.  The board shall
  2 32 have sixty days from the date of the intervention
  2 33 request to render a decision on the contract.
  2 34    Sec.    .  Section 476.43, subsections 2, 3, and 4,
  2 35 Code 1995, are amended by striking the subsections and
  2 36 inserting in lieu thereof the following:
  2 37    2.  The board shall establish a uniform competitive
  2 38 bidding process so that an electric utility shall
  2 39 acquire alternate energy at a just and economically
  2 40 based market rate.  An alternate energy contract shall
  2 41 require that the utility pay the competitive bid rate
  2 42 to the facility during the contract term.  The
  2 43 kilowatt per hour competitive bid rate shall not be
  2 44 less than the annual average rate of off-peak kilowatt
  2 45 per hour rates and peak kilowatt per hour rates at
  2 46 which an electric utility would have had to purchase
  2 47 the power.  An electric utility may produce its own
  2 48 alternate energy by constructing and operating an
  2 49 alternate energy production facility or small hydro
  2 50 facility if the facility is constructed and operated
  3  1 as a separate affiliate entity.  However, the electric
  3  2 utility shall participate in the competitive bidding
  3  3 process using a third-party evaluator.  A bid from an
  3  4 electric utility producing its own alternate energy
  3  5 shall not take into account regulated industry-based
  3  6 factors including, but not limited to, eminent domain
  3  7 and transmission ownership in order to produce a lower
  3  8 cost bid.
  3  9    3.  Notwithstanding section 476.51, an electric
  3 10 utility which fails to comply with the requirements of
  3 11 subsection 1 or which obstructs the policy of this
  3 12 state as stated in section 476.41 shall be subject to
  3 13 a civil penalty, levied by the board, in an amount
  3 14 that is equivalent to three times the total project
  3 15 capital cost of the lowest bid filed with the board to
  3 16 comply with the requirements of subsection 1.  Civil
  3 17 penalties collected under this subsection shall be
  3 18 forwarded to the treasurer of state to be credited to
  3 19 the Iowa energy center.  Any moneys allocated to the
  3 20 Iowa energy center pursuant to this subsection shall
  3 21 be used solely for providing grants to nonprofit
  3 22 agencies for alternate energy production.  These
  3 23 penalties shall be excluded from the electric
  3 24 utility's costs when determining the electric
  3 25 utility's revenue requirement, and shall not be
  3 26 included either directly or indirectly in the electric
  3 27 utility's rates or charges to customers.
  3 28    4.  Notwithstanding subsection 2, alternate energy
  3 29 produced by recovery of methane at a sanitary landfill
  3 30 shall be purchased at the rate existing as of January
  3 31 1, 1996.
  3 32    Sec.    .  Section 476.44, subsection 1, Code 1995,
  3 33 is amended by striking the subsection.
  3 34    Sec.    .  Section 476.44, subsection 2, Code 1995,
  3 35 is amended to read as follows:
  3 36    2.  a.  An electric utility subject to this
  3 37 division, except a utility which elects rate
  3 38 regulation pursuant to section 476.1A, shall not be
  3 39 required to purchase, at any one time, more than its
  3 40 share of one two hundred five ten megawatts of power
  3 41 from alternative energy production facilities or small
  3 42 hydro facilities at the rates in accordance with the
  3 43 competitive bidding process established pursuant to
  3 44 section 476.43 and pursuant to timelines established
  3 45 under paragraph "c".  For purposes of this section,
  3 46 "megawatt" shall be determined in accordance with a
  3 47 utility's average capacity.  "Average capacity" means
  3 48 a utility's total output over a year divided by the
  3 49 number of hours in the year.  The board shall allocate
  3 50 the one two hundred five ten megawatts based upon each
  4  1 utility's percentage of the total Iowa retail peak
  4  2 demand, for the year beginning January 1, 1990, of all
  4  3 utilities subject to this section.  If a utility
  4  4 undergoes reorganization as defined in section 476.76,
  4  5 the board shall combine the allocated purchases of
  4  6 power for each utility involved in the reorganization.
  4  7    Notwithstanding the one two hundred five ten
  4  8 megawatt maximum, the board may increase the amount of
  4  9 power that a utility is required to purchase at the
  4 10 rates established pursuant to section 476.43 if the
  4 11 board finds that a utility, including a reorganized
  4 12 utility, exceeds its 1990 Iowa retail peak demand by
  4 13 twenty percent and the additional power the utility is
  4 14 required to purchase will encourage the development of
  4 15 alternate energy production facilities and small hydro
  4 16 facilities.  The increase shall not exceed the
  4 17 utility's increase in peak demand multiplied by the
  4 18 ratio of the utility's share of the one two hundred
  4 19 five ten megawatt maximum to its 1990 Iowa retail peak
  4 20 demand.
  4 21    b.  Of that portion of alternate energy required to
  4 22 be purchased by a utility under this section, eighty-
  4 23 five percent shall be purchased from alternate energy
  4 24 production facilities or small hydro facilities
  4 25 generating electricity with current and viable
  4 26 technologies and fifteen percent shall be purchased
  4 27 from alternate energy production facilities generating
  4 28 electricity from new technologies.  The board shall
  4 29 provide for a minimum of thirty percent of the eighty-
  4 30 five percent required purchase of alternate energy
  4 31 under this paragraph to be purchased from small hydro
  4 32 facilities.  Of the eighty-five percent, thirty
  4 33 percent shall be purchased in accordance with the
  4 34 following:
  4 35    (1)  At least ten percent shall be from dedicated
  4 36 energy crops grown within the state, fifty percent of
  4 37 which shall be from projects of five hundred kilowatts
  4 38 or less.
  4 39    (2)  At least ten percent shall be from
  4 40 agricultural wastes produced from agricultural crops
  4 41 grown within the state, fifty percent of which shall
  4 42 be from projects of five hundred kilowatts or less.
  4 43    (3)  At least ten percent shall be from small scale
  4 44 wind generation projects located within the state of
  4 45 two hundred fifty kilowatts or less.
  4 46    c.  By December 31, 1997, the board shall require
  4 47 an electric utility to enter into contracts for the
  4 48 purchase of the utility's allotted share of eighty-
  4 49 nine megawatts of electricity generated from alternate
  4 50 energy production facilities, and by July 1, 1999, the
  5  1 board shall require the utility to enter into
  5  2 contracts for the purchase of the utility's allotted
  5  3 share of an additional one hundred five megawatts.
  5  4 For purposes of this section, new technologies include
  5  5 only those technologies that use nonfossil fuel to
  5  6 derive renewable energy."
  5  7    #5.  Page 7, by inserting after line 2 the
  5  8 following:
  5  9    "Sec.    .  APPLICABILITY TO EXISTING CONTRACTS.
  5 10 The provisions of this Act relating to alternate
  5 11 energy shall not affect the terms and conditions of
  5 12 any contract between an alternate energy production
  5 13 facility or small hydro facility and an electric
  5 14 utility that was entered into pursuant to sections
  5 15 476.43 and 476.44 for purchase of alternate energy if
  5 16 the contract was entered into prior to the effective
  5 17 date of this Act.  In addition, this Act shall not
  5 18 affect potential contracts between alternate energy
  5 19 production facilities and electric utilities if a
  5 20 petition relating to the potential contracts has been
  5 21 filed by January 1, 1996, and an action is currently
  5 22 pending before the Iowa utilities board.  For purposes
  5 23 of the pending actions, the Iowa utilities board shall
  5 24 not take into account the changes contained in this
  5 25 Act.
  5 26    Sec.    .  It is the intent of the general assembly
  5 27 that persons who have proceeded in good faith under
  5 28 the terms and conditions of sections 476.43 and
  5 29 476.44, prior to their amendment by this Act, not
  5 30 suffer economic loss as a result of this Act.  These
  5 31 persons shall be reimbursed by the utilities for their
  5 32 reasonable good faith development costs as determined
  5 33 by the Iowa utilities board."
  5 34    #6.  Title page, line 1, by inserting after the
  5 35 word "efficiency" the following:  "and alternate
  5 36 energy".
  5 37    #7.  Title page, line 4, by inserting after the
  5 38 word "research" the following:  "and providing an
  5 39 applicability provision".
  5 40    #8.  By renumbering as necessary.  
  5 41 
  5 42 
  5 43                              
  5 44 BILL FINK
  5 45 
  5 46 
  5 47                               
  5 48 MARY LUNDBY
  5 49 
  5 50 
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  6  2 
  6  3 
  6  4                               
  6  5 
  6  6 
  6  7                               
  6  8 SF 2370.312 76
  6  9 js/cf
     

Text: S05750                            Text: S05752
Text: S05700 - S05799                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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