Text: SSB02194 Text: SSB02196 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.1, unnumbered paragraph 7, Code 1 2 1995, is amended to read as follows: 1 3 The jurisdiction of the board under this chapter shall 1 4 includeprogramsefforts designed to promote the use of energy 1 5 efficiency strategies by rate or service-regulated gas and 1 6 electric utilities.These programs shall be cost effective.1 7The board may initiate these programs as pilot projects to1 8accumulate sufficient data to determine if the programs meet1 9the requirements of this paragraph.1 10 Sec. 2. Section 476.1A, subsections 5 and 6, Code 1995, 1 11 are amended to read as follows: 1 12 5. Assessment of fees for the support of the Iowa energy 1 13 center created in section 266.39C and the center for global 1 14warmingand regional environmental research established by the 1 15 state board of regents. 1 16 6. Filing energy efficiency plans and energy efficiency 1 17 results with the board. The energy efficiency plans as a 1 18 whole shall be cost-effective. The board may permit these 1 19 utilities to file joint plans. 1 20 Sec. 3. Section 476.1A, unnumbered paragraph 2, Code 1995, 1 21 is amended to read as follows: 1 22 The board may waive all or part of the energy efficiency 1 23 filing and review requirements for electric cooperative 1 24 corporations and associations and electric public utilities 1 25 which demonstrate superior results with existing energy 1 26 efficiencyprogramsefforts. 1 27 Sec. 4. Section 476.1B, subsection 1, paragraphs k and l, 1 28 Code 1995, are amended to read as follows: 1 29 k. Assessment of fees for the support of the Iowa energy 1 30 center created in section 266.39C and theglobal warming1 31 center for global and regional environmental research created 1 32 by the state board of regents. 1 33 l. Filing energy efficiency plans and energy efficiency 1 34 results with the board. The energy efficiency plans as a 1 35 whole shall be cost-effective. The board may permit these 2 1 utilities to file joint plans. 2 2 Sec. 5. Section 476.1B, subsection 2, Code 1995, is 2 3 amended to read as follows: 2 4 2. The board may waive all or part of the energy 2 5 efficiency filing and review requirements for municipally 2 6 owned utilities which demonstrate superior results with 2 7 existing energy efficiencyprogramsefforts. 2 8 Sec. 6. Section 476.1C, subsection 1, unnumbered paragraph 2 9 2, Code 1995, is amended to read as follows: 2 10 Gas public utilities having fewer than two thousand 2 11 customers shall be subject to the assessment of fees for the 2 12 support of the Iowa energy center created in section 266.39C 2 13 and theglobal warmingcenter for global and regional 2 14 environmental research created by the state board of regents 2 15 and shall file energy efficiency plans and energy efficiency 2 16 results with the board. The energy efficiency plans as a 2 17 whole shall be cost-effective. The board may waive all or 2 18 part of the energy efficiency filing requirements if the gas 2 19 utility demonstrates superior results with existing energy 2 20 efficiencyprogramsefforts. 2 21 Sec. 7. Section 476.2, subsections 5, 6, and 7, Code 1995, 2 22 are amended by striking the subsections. 2 23 Sec. 8. Section 476.6, subsection 17, Code 1995, is 2 24 amended by striking the subsection and inserting in lieu 2 25 thereof the following: 2 26 17. ENERGY EFFICIENCY PLANS. Electric and gas public 2 27 utilities shall offer energy efficiency programs and services 2 28 to their customers through energy efficiency plans. An energy 2 29 efficiency plan as a whole shall be cost-effective. Energy 2 30 efficiency programs for qualified low-income persons and for 2 31 tree planting programs need not be cost-effective and shall 2 32 not be considered in determining cost-effectiveness of plans 2 33 as a whole. The energy efficiency programs and services in 2 34 the plans may be provided by the utility or by a contractor or 2 35 agent of the utility. 3 1 Sec. 9. Section 476.6, subsection 19, paragraphs a through 3 2 f, Code 1995, are amended by striking the paragraphs and 3 3 inserting in lieu thereof the following: 3 4 a. Rate-regulated gas and electric utilities shall file 3 5 energy efficiency plans with the board. An energy efficiency 3 6 plan and budget shall include a range of programs, tailored to 3 7 the needs of customers for energy efficiency opportunities. 3 8 The plans shall include programs for qualified low-income 3 9 persons. 3 10 b. An energy efficiency plan shall assess potential energy 3 11 and capacity savings available from actual and projected 3 12 customer usage by applying commercially available technology 3 13 and improved operating practices to energy-using equipment and 3 14 buildings. The plan shall include economically achievable 3 15 programs designed to attain these potential energy and 3 16 capacity savings. 3 17 c. The board shall conduct contested case proceedings for 3 18 review of energy efficiency plans and budgets filed by rate- 3 19 regulated gas or electric utilities. The board may approve, 3 20 reject, or modify the plans and budgets. Notwithstanding the 3 21 provisions of section 17A.19, subsection 5, in an application 3 22 for judicial review of the board's decision concerning a 3 23 utility's energy efficiency plan or budget, the reviewing 3 24 court shall not order a stay. Whenever a request to modify an 3 25 approved plan or budget is filed subsequently by the office of 3 26 consumer advocate or a rate-regulated gas or electric utility, 3 27 the board shall promptly initiate a formal proceeding if the 3 28 board determines that any reasonable ground exists for 3 29 investigating the request. The formal proceeding may be 3 30 initiated at any time by the board on its own motion. 3 31 Implementation of board approved plans or budgets shall be 3 32 considered continuous in nature and shall be subject to 3 33 investigation at any time by the board or the office of the 3 34 consumer advocate. 3 35 d. Notice to customers of a contested case proceeding for 4 1 review of energy efficiency plans and budgets shall be in a 4 2 manner prescribed by the board. 4 3 e. A gas or electric rate-regulated public utility may 4 4 recover, through an automatic adjustment mechanism filed 4 5 pursuant to subsection 11, over a period not to exceed the 4 6 term of the plan, the costs of an energy efficiency plan 4 7 approved by the board, including amounts for a plan approved 4 8 prior to July 1, 1996, in a contested case proceeding 4 9 conducted pursuant to paragraph "c". The board may 4 10 periodically conduct a contested case proceeding to evaluate 4 11 the reasonableness and prudence of the utility's 4 12 implementation of an approved energy efficiency plan and 4 13 budget. If a utility is not taking all reasonable actions to 4 14 cost-effectively implement an approved energy efficiency plan, 4 15 the board shall not allow the utility to recover from 4 16 customers costs in excess of those costs that would be 4 17 incurred under reasonable and prudent implementation. The 4 18 utility shall not represent energy efficiency in customer 4 19 billings as a separate cost or expense unless the board 4 20 otherwise approves. 4 21 Sec. 10. Section 476.6, subsection 21, Code 1995, is 4 22 amended to read as follows: 4 23 21. ENERGY EFFICIENCY PROGRAM FINANCING. The board may 4 24 require each rate-regulated gas or electric public utility to 4 25 offer qualified customers the opportunity to enter into an 4 26 agreement with the utility, or a contractor or agent of the 4 27 utility, for the amount of moneys reasonably necessary to 4 28 finance cost-effective energy efficiency improvements to the 4 29 qualified customers' residential dwellings or businesses. 4 30 Sec. 11. Section 476.10A, Code 1995, is amended to read as 4 31 follows: 4 32 476.10A FUNDING FOR IOWA ENERGY CENTER ANDGLOBAL WARMING4 33 CENTER FOR GLOBAL AND REGIONAL ENVIRONMENTAL RESEARCH. 4 34 1. The board shall direct all gas and electric utilities 4 35 to remit to the treasurer of stateone-tenth of one percent5 1 the following: 5 2 a. Through June 30, 1997, one-tenth of one percent of the 5 3 total gross operating revenues during the last calendar year 5 4 derived fromtheirthe utility's intrastate public utility 5 5 operations.The board shall by rule provide a schedule for5 6remittances which shall require that the first remittance be5 7made not before July 1, 1991.5 8 b. From July 1, 1997, through June 30, 2000, eighty-five 5 9 one-thousandths of one percent of the total gross operating 5 10 revenues during the last calendar year derived from the 5 11 utility's intrastate public utility operations. 5 12 2. The amounts collected pursuant to this section shall be 5 13 in addition to the amounts permitted to be assessed pursuant 5 14 to section 476.10. The board shall allow inclusion of these 5 15 amounts in the budgets approved by the board pursuant to 5 16 section 476.6, subsection 19, paragraph"a""c".Eighty-five5 17 3. a. Of the amounts collected under this section, for 5 18 the fiscal year beginning July 1, 1996, and ending June 30, 5 19 1997, eighty-five percentof the remittances collected5 20pursuant to this sectionis appropriated to the Iowa energy 5 21 center created in section 266.39C. Fifteen, and fifteen 5 22 percentof the remittances collected pursuant to this section5 23 is appropriated to the center for globalwarmingand regional 5 24 environmental research established by the state board of 5 25 regents. 5 26 b. Of the amounts collected under this section from July 5 27 1, 1997, through June 30, 2000, one hundred percent is 5 28 appropriated each fiscal year to the Iowa energy center. 5 29 4. The center for global and regional environmental 5 30 research shall submit a report to the general assembly and the 5 31 governor by January 1, 1997, which describes the center's 5 32 activities and the results that the center has accomplished. 5 33 The Iowa energy center shall submit a report to the general 5 34 assembly and the governor by January 1, 2000, which describes 5 35 the center's activities and the results that the center has 6 1 accomplished. 6 2 5. Notwithstanding section 8.33, any unexpended moneys 6 3 remitted to the treasurer of state under this section shall be 6 4 retained for the purposes designated. Notwithstanding section 6 5 12C.7, subsection 2, interest or earnings on investments or 6 6 time deposits of the moneys remitted under this section shall 6 7 be retained and used for the purposes designated. 6 8 Sec. 12. Section 476A.6, subsections 4 and 5, Code 1995, 6 9 are amended by striking the subsections and inserting in lieu 6 10 thereof the following: 6 11 4. The applicant, if a public utility as defined in 6 12 section 476.1, has in effect an energy efficiency plan 6 13 designed to reduce peak loads and to increase efficiency of 6 14 use of energy, and the facility in the application is 6 15 necessary notwithstanding the existence of the energy 6 16 efficiency plan. As used in this subsection, "energy 6 17 efficiency plan" includes at a minimum, cost-effective energy 6 18 efficiency services and programs, including cost-effective 6 19 load management and interruptible service programs. 6 20 5. The applicant, if a public utility as defined in 6 21 section 476.1, shall demonstrate to the board that the utility 6 22 has considered sources for long-term electric supply from 6 23 either purchase of electricity or investment in facilities 6 24 owned by other persons, including consideration of the 6 25 following: 6 26 a. Wheeling agreements and other energy or capacity- 6 27 sharing agreements, where cost-effective, with other sources 6 28 that have available energy or capacity. 6 29 b. Establishment of renewable energy programs or purchase 6 30 of electricity from renewable energy suppliers. 6 31 Sec. 13. Section 476.65, Code 1995, is repealed. 6 32 EXPLANATION 6 33 This bill makes several changes regarding energy efficiency 6 34 programs and requirements. It changes "energy efficiency 6 35 programs" to "energy efficiency efforts", and requires that 7 1 the energy efficiency plans submitted by rural electric 7 2 cooperatives, municipal utilities, and certain gas utilities 7 3 be cost-effective, as a whole, except for low-income programs 7 4 and tree planting programs. 7 5 The bill strikes the requirement that an electric rate- 7 6 regulated utility expend at least two percent and a gas rate- 7 7 regulated utility expend at least one and one-half percent of 7 8 gross operating revenues on implementation of the energy 7 9 efficiency plan and budget, that the energy efficiency plan 7 10 include specified programs and services, that a utility can be 7 11 assessed a reward or a penalty based on energy efficiency 7 12 performance, that a legislative interim committee be 7 13 established in 1996 to review energy efficiency programs. The 7 14 bill amends a provision allowing the board to require a 7 15 utility to offer customers the opportunity to finance energy 7 16 efficiency improvements. 7 17 Instead, the bill requires that rate-regulated gas and 7 18 electric utilities file an energy efficiency plan and budget 7 19 with the board. The energy efficiency plan must include a 7 20 range of programs tailored to the needs of the customer, and 7 21 must include programs for low-income persons. The plan must 7 22 assess potential energy and capacity savings by applying 7 23 commercially available technology and improved operating 7 24 practices to energy-using buildings and equipment and must 7 25 include economically achievable programs designed to attain 7 26 potential energy and capacity savings. 7 27 The bill allows a gas or electric rate-regulated utility to 7 28 automatically adjust rates over the time period of the energy 7 29 efficiency plan if the plan was approved by the Iowa utilities 7 30 board in a contested case proceeding and the schedule showing 7 31 the automatic adjustment of rates and charges is first filed 7 32 with the board. The bill provides that if a utility is not 7 33 taking all reasonable actions to cost-effectively implement an 7 34 approved energy efficiency plan, the board will not allow the 7 35 recovery of costs in excess of those that would have been 8 1 incurred under reasonable and prudent implementation. The 8 2 bill provides that a utility cannot list energy efficiency as 8 3 a separate cost or expense in customer billings unless the 8 4 board otherwise approves. 8 5 The bill changes funding for the Iowa energy center and the 8 6 center for global and regional environmental research from 8 7 one-tenth of one percent to eighty-five-one-thousandths of one 8 8 percent of a utility's total gross operating revenues derived 8 9 from intrastate operations beginning July 1, 1997. In 8 10 addition, the bill stops funding for the center for global and 8 11 regional environmental research on June 30, 1997. The bill 8 12 requires both centers to provide a report to the governor and 8 13 the general assembly which describes their operations and the 8 14 results that have been accomplished. 8 15 The bill strikes a requirement that a utility seeking a 8 16 certificate allowing construction of a new generating plant 8 17 have a comprehensive energy management program and instead 8 18 requires that an energy efficiency plan be in effect in 8 19 addition to the requirement that a utility consider sources 8 20 for long-term electricity supply from either purchase of 8 21 electricity or investment in facilities owned by another 8 22 person. The bill requires that the utility consider wheeling 8 23 agreements and other energy or capacity-sharing agreements and 8 24 the establishment of an alternate energy program or the 8 25 purchase of alternate energy. 8 26 Finally, the bill repeals section 476.65 relating to energy 8 27 audits. 8 28 LSB 4299SC 76 8 29 js/jj/8
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