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House File 577

Partial Bill History

Bill Text

PAG LIN
  1  1                                         HOUSE FILE 577
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO ELECTRIC POWER GENERATION AND TRANSMISSION, BY
  1  5    ADDRESSING THE CRITERIA FOR CONSTRUCTION OR LEASE OF AN 
  1  6    ELECTRIC GENERATING FACILITY, AND FOR THE DEVELOPMENT OF
  1  7    RATEMAKING PRINCIPLES TO APPLY TO CERTAIN ELECTRIC GENERATING
  1  8    FACILITIES; WAIVERS; PROVIDING FOR THE DEVELOPMENT OF A STATE
  1  9    ELECTRIC ENERGY POLICY; PROVIDING FOR ALTERNATE ENERGY
  1 10    PURCHASE PROGRAMS; APPROVAL OF PLANS AND BUDGETS FOR
  1 11    REGULATING EMISSIONS FROM COAL-FIRED PLANTS; PROVIDING FOR
  1 12    JOINT AGREEMENTS FOR ACQUISITION OF OWNERSHIP OF A JOINT
  1 13    FACILITY FOR ELECTRIC POWER GENERATION AND TRANSMISSION, AND
  1 14    FOR THE PLANNING, FINANCING, OPERATION, AND MAINTENANCE OF THE
  1 15    JOINT FACILITY; PROVIDING FOR THE BONDING AUTHORITY OF
  1 16    ELECTRIC POWER AGENCIES; AND MAKING CERTAIN OTHER CHANGES AND
  1 17    REQUIREMENTS RELATED TO ELECTRIC GENERATION AND TRANSMISSION;
  1 18    AND PROVIDING AN EFFECTIVE DATE.  
  1 19 
  1 20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 21 
  1 22    Section 1.  Section 12C.1, subsection 1, Code 2001, as
  1 23 amended by 2001 Iowa Acts, House File 637, section 4, is
  1 24 amended to read as follows:
  1 25    1.  All funds held by the following officers or
  1 26 institutions shall be deposited in one or more depositories
  1 27 first approved by the appropriate governing body as indicated:
  1 28 for the treasurer of state, by the executive council; for
  1 29 judicial officers and court employees, by the supreme court;
  1 30 for the county treasurer, recorder, auditor, and sheriff, by
  1 31 the board of supervisors; for the city treasurer or other
  1 32 designated financial officer of a city, by the city council;
  1 33 for the county public hospital or merged area hospital, by the
  1 34 board of hospital trustees; for a memorial hospital, by the
  1 35 memorial hospital commission; for a school corporation, by the
  2  1 board of school directors; for a city utility or combined
  2  2 utility system established under chapter 388, by the utility
  2  3 board; for a library service area established under chapter
  2  4 256, by the library service area board of trustees; and for an
  2  5 electric power agency as defined in section 28F.2 or 476A.20,
  2  6 by the governing body of the electric power agency.  However,
  2  7 the treasurer of state and the treasurer of each political
  2  8 subdivision or the designated financial officer of a city
  2  9 shall invest all funds not needed for current operating
  2 10 expenses in time certificates of deposit in approved
  2 11 depositories pursuant to this chapter or in investments
  2 12 permitted by section 12B.10.  The list of public depositories
  2 13 and the amounts severally deposited in the depositories are
  2 14 matters of public record.  This subsection does not limit the
  2 15 definition of "public funds" contained in subsection 2.
  2 16 Notwithstanding provisions of this section to the contrary,
  2 17 public funds of a state government deferred compensation plan
  2 18 established by the executive council may also be invested in
  2 19 the investment products authorized under section 509A.12.
  2 20    Sec. 2.  Section 12C.1, subsection 2, paragraph b, Code
  2 21 2001, is amended to read as follows:
  2 22    b.  "Public funds" and "public deposits" mean the moneys of
  2 23 the state or a political subdivision or instrumentality of the
  2 24 state including a county, school corporation, special
  2 25 district, drainage district, unincorporated town or township,
  2 26 municipality, or municipal corporation or any agency, board,
  2 27 or commission of the state or a political subdivision; any
  2 28 court or public body noted in subsection 1; a legal or
  2 29 administrative entity created pursuant to chapter 28E; an
  2 30 electric power agency as defined in section 28F.2 or 476A.20;
  2 31 and federal and state grant moneys of a quasi-public state
  2 32 entity that are placed in a depository pursuant to this
  2 33 chapter.
  2 34    Sec. 3.  Section 28F.2, Code 2001, is amended to read as
  2 35 follows:
  3  1    28F.2  DEFINITIONS.
  3  2    As used in this chapter, unless the context otherwise
  3  3 requires:
  3  4    1.  The terms "public "Public agency", "state", and
  3  5 "private agency" shall have the meanings prescribed by section
  3  6 28E.2.
  3  7    2.  The term "project" "Project" or "projects" shall mean
  3  8 means any works or facilities referred to in section 28F.1 and
  3  9 shall include all property real and personal, pertinent
  3 10 thereto or connected with such project or projects, and the
  3 11 existing works or facilities, if any, to which such project or
  3 12 projects are an extension, addition, betterment or
  3 13 improvement.
  3 14    3.  "Electric power agency" means an entity financing or
  3 15 acquiring electric power facilities pursuant to this chapter
  3 16 or chapter 28E or 476A.
  3 17    Sec. 4.  Section 427.1, subsection 2, Code 2001, is amended
  3 18 to read as follows:
  3 19    2.  MUNICIPAL AND MILITARY PROPERTY.  The property of a
  3 20 county, township, city, school corporation, levee district,
  3 21 drainage district, or the Iowa national guard, when devoted to
  3 22 public use and not held for pecuniary profit, except property
  3 23 of a municipally owned electric utility held under joint
  3 24 ownership and property of an electric power facility financed
  3 25 under chapter 28F which or 476A that shall be subject to
  3 26 taxation under chapter 437A and facilities of a municipal
  3 27 utility that are used for the provision of local exchange
  3 28 services pursuant to chapter 476, but only to the extent such
  3 29 facilities are used to provide such services, which shall be
  3 30 subject to taxation under chapter 433, except that section
  3 31 433.11 shall not apply.  The exemption for property owned by a
  3 32 city or county also applies to property which is operated by a
  3 33 city or county as a library, art gallery or museum,
  3 34 conservatory, botanical garden or display, observatory or
  3 35 science museum, or as a location for holding athletic
  4  1 contests, sports or entertainment events, expositions,
  4  2 meetings or conventions, or leased from the city or county for
  4  3 any such purposes, or leased from the city or county by the
  4  4 Iowa national guard or by a federal agency for the benefit of
  4  5 the Iowa national guard when devoted for public use and not
  4  6 for pecuniary profit.  Food and beverages may be served at the
  4  7 events or locations without affecting the exemptions, provided
  4  8 the city has approved the serving of food and beverages on the
  4  9 property if the property is owned by the city or the county
  4 10 has approved the serving of food and beverages on the property
  4 11 if the property is owned by the county.
  4 12    Sec. 5.  Section 437A.3, subsection 17, paragraph b, Code
  4 13 2001, is amended to read as follows:
  4 14    b.  An electric power generating plant where the
  4 15 acquisition cost of all interests acquired exceeds ten million
  4 16 dollars.  For purposes of this paragraph, "electric power
  4 17 generating plant" means each nameplate rated electric power
  4 18 generating plant owned solely or jointly by any person or
  4 19 electric power facility financed under the provisions of
  4 20 chapter 28F or 476A in which electrical energy is produced
  4 21 from other forms of energy, including all equipment used in
  4 22 the production of such energy through its step-up transformer.
  4 23    Sec. 6.  Section 437A.6, subsection 1, paragraph b, Code
  4 24 2001, is amended to read as follows:
  4 25    b.  Facilities owned by or leased to a municipal utility
  4 26 when devoted to public use and not held for pecuniary profit,
  4 27 except facilities of a municipally owned electric utility held
  4 28 under joint ownership or lease and facilities of an electric
  4 29 power facility financed under chapter 28F or 476A.
  4 30    Sec. 7.  Section 437A.7, subsection 2, paragraph a, Code
  4 31 2001, is amended to read as follows:
  4 32    a.  Transmission lines owned by or leased to a municipal
  4 33 utility when devoted to public use and not for pecuniary
  4 34 profit, except transmission lines of a municipally owned
  4 35 electric utility held under joint ownership and transmission
  5  1 lines of an electric power facility financed under chapter 28F
  5  2 or 476A.
  5  3    Sec. 8.  Section 476.1A, Code 2001, is amended by adding
  5  4 the following new subsection:
  5  5    NEW SUBSECTION.  5A.  Filing alternate energy purchase
  5  6 program plans with the board, and offering such programs to
  5  7 customers, pursuant to section 476.47.
  5  8    Sec. 9.  Section 476.1B, subsection 1, Code 2001, is
  5  9 amended by adding the following new paragraphs:
  5 10    NEW PARAGRAPH.  m.  An electric power agency as defined in
  5 11 chapters 28F and 476A that includes as a member a city or
  5 12 municipally owned utility that builds transmission facilities
  5 13 after July 1, 2001, is subject to applicable transmission
  5 14 reliability rules or standards adopted by the board for those
  5 15 facilities.
  5 16    n.  Filing alternate energy purchase program plans with the
  5 17 board, and offering such programs to customers, pursuant to
  5 18 section 476.47.
  5 19    Sec. 10.  Section 476.6, Code 2001, is amended by adding
  5 20 the following new subsection:
  5 21    NEW SUBSECTION.  16B.  ELECTRIC POWER GENERATING FACILITY
  5 22 EMISSIONS.
  5 23    a.  It is the intent of the general assembly that the
  5 24 state, through a collaborative effort involving state agencies
  5 25 and affected generation owners, provide for compatible
  5 26 statewide environmental and electric energy policies with
  5 27 respect to regulated emissions from rate-regulated electric
  5 28 power generating facilities in the state that are fueled by
  5 29 coal.  Each rate-regulated public utility that is an owner of
  5 30 one or more electric power generating facilities fueled by
  5 31 coal and located in this state on July 1, 2001, shall develop
  5 32 a multiyear plan and budget for managing regulated emissions
  5 33 from its facilities in a cost-effective manner.
  5 34    (1)  The initial multiyear plan and budget shall be filed
  5 35 with the board by April 1, 2002.  Updates to the plan and
  6  1 budget shall be filed at least every twenty-four months.
  6  2    (2)  Copies of the initial plan and budget, as well as any
  6  3 subsequent updates, shall be served on the environmental
  6  4 protection division of the department of natural resources.
  6  5    (3)  The initial multiyear plan and budget and any
  6  6 subsequent updates shall be considered in a contested case
  6  7 proceeding pursuant to chapter 17A.  The environmental
  6  8 protection division of the department of natural resources and
  6  9 the consumer advocate shall participate as parties to the
  6 10 proceeding.
  6 11    (4)  The department of natural resources shall state
  6 12 whether the plan or update meets applicable state
  6 13 environmental requirements for regulated emissions.  If the
  6 14 plan does not meet these requirements, the department shall
  6 15 recommend amendments that outline actions necessary to bring
  6 16 the plan or update into compliance with the environmental
  6 17 requirements.
  6 18    b.  The board shall not approve a plan or update that does
  6 19 not meet applicable state environmental requirements and
  6 20 federal ambient air quality standards for regulated emissions
  6 21 from electric power generating facilities located in the
  6 22 state.
  6 23    c.  The board shall review the plan or update and the
  6 24 associated budget, and shall approve the plan or update and
  6 25 the associated budget if the plan or update and the associated
  6 26 budget are reasonably expected to achieve cost-effective
  6 27 compliance with applicable state environmental requirements
  6 28 and federal ambient air quality standards.  In reaching its
  6 29 decision, the board shall consider whether the plan or update
  6 30 and the associated budget reasonably balance costs,
  6 31 environmental requirements, economic development potential,
  6 32 and the reliability of the electric generation and
  6 33 transmission system.
  6 34    d.  The board shall issue an order approving or rejecting a
  6 35 plan, update, or budget within one hundred eighty days after
  7  1 the public utility's filing is deemed complete; however, upon
  7  2 good cause shown, the board may extend the time for issuing
  7  3 the order as follows:
  7  4    (1)  The board may grant an extension of thirty days.
  7  5    (2)  The board may grant more than one extension, but each
  7  6 extension must rely upon a separate showing of good cause.
  7  7    (3)  A subsequent extension must not be granted any earlier
  7  8 than five days prior to the expiration of the original one-
  7  9 hundred-eighty-day period, or the current extension.
  7 10    e.  The reasonable costs incurred by a rate-regulated
  7 11 public utility in preparing and filing the plan, update, or
  7 12 budget and in participating in the proceedings before the
  7 13 board and the reasonable costs associated with implementing
  7 14 the plan, update, or budget shall be included in its regulated
  7 15 retail rates.
  7 16    f.  It is the intent of the general assembly that the
  7 17 board, in an environmental plan, update, or associated budget
  7 18 filed under this section by a rate-regulated public utility,
  7 19 may limit investments or expenditures that are proposed to be
  7 20 undertaken prior to the time that the environmental benefit to
  7 21 be produced by the investment or expenditure would be required
  7 22 by state or federal law.
  7 23    g.  The board shall report to the general assembly by
  7 24 January 21, 2003, on the appropriateness and desirability of
  7 25 requiring the municipal utilities and the rural electric
  7 26 cooperatives to file multiyear plans and budgets for managing
  7 27 regulated emissions from their electric power generating
  7 28 facilities fueled by coal and located in this state, similar
  7 29 to the process required for rate-regulated public utilities
  7 30 under this subsection.
  7 31    Sec. 11.  NEW SECTION.  476.47  ALTERNATE ENERGY PURCHASE
  7 32 PROGRAMS.
  7 33    1.  Beginning January 1, 2004, an electric utility, whether
  7 34 or not rate-regulated under this chapter, shall offer an
  7 35 alternate energy purchase program to customers, based on
  8  1 energy produced by alternate energy production facilities in
  8  2 Iowa.
  8  3    2.  The board shall require electric utilities to file
  8  4 plans for alternate energy purchase programs offered pursuant
  8  5 to this section.
  8  6    a.  Rate-regulated electric utilities shall file plans for
  8  7 alternate energy purchase programs that allow customers to
  8  8 contribute voluntarily to the development of alternate energy
  8  9 in Iowa, and shall file tariffs as required by the board by
  8 10 rule.
  8 11    b.  Electric utilities that are not rate-regulated shall
  8 12 offer alternate energy purchase programs at rates determined
  8 13 by their governing authority, and shall file tariffs with the
  8 14 board for informational purposes only.
  8 15    3.  The electric utility shall notify consumers of its
  8 16 alternate energy purchase program and any proposed
  8 17 modifications to such program at least sixty days prior to
  8 18 implementation of the program or any modification.
  8 19    4.  For purposes of this section, an electric utility may
  8 20 base its program on energy produced by alternate energy
  8 21 production facilities located outside of Iowa under any of the
  8 22 following circumstances:
  8 23    a.  The energy is purchased by the electric utility
  8 24 pursuant to a contract in effect prior to July 1, 2001, and
  8 25 continues until the expiration of the contract, including any
  8 26 options to renew that are exercised by the electric utility.
  8 27    b.  The electric utility has a financial interest, as of
  8 28 July 1, 2001, in the alternate energy production facility that
  8 29 is located outside of Iowa, or in an entity that has a
  8 30 financial interest in an alternate energy production facility
  8 31 located outside of Iowa.
  8 32    c.  The energy is purchased by an electric utility that is
  8 33 not rate-regulated and that is required to purchase all of its
  8 34 electric power requirements from a single supplier that is
  8 35 physically located outside of Iowa.
  9  1    5.  This section shall not apply to non-rate-regulated
  9  2 electric utilities physically located outside of Iowa that
  9  3 serve Iowa customers.
  9  4    6.  Any consumer-owned utility may apply to the board for a
  9  5 waiver under this section, and the board, for good cause, may
  9  6 grant the waiver.
  9  7    Sec. 12.  Section 476.53, Code 2001, is amended by striking
  9  8 the section and inserting in lieu thereof the following:
  9  9    476.53  ELECTRIC GENERATING AND TRANSMISSION FACILITIES.
  9 10    1.  It is the intent of the general assembly to attract the
  9 11 development of electric power generating and transmission
  9 12 facilities within the state in sufficient quantity to ensure
  9 13 reliable electric service to Iowa consumers and provide
  9 14 economic benefits to the state.
  9 15    2.  The general assembly's intent with regard to the
  9 16 development of electric power generating and transmission
  9 17 facilities, as provided in subsection 1, shall be implemented
  9 18 in a manner that is cost-effective and compatible with the
  9 19 environmental policies of the state, as expressed in Title XI.
  9 20    3.  a.  If a rate-regulated public utility files an
  9 21 application pursuant to section 476A.3 to construct in Iowa a
  9 22 baseload electric power generating facility with a nameplate
  9 23 generating capacity equal to or greater than three hundred
  9 24 megawatts or a combined-cycle electric power generating
  9 25 facility, or an alternate energy production facility as
  9 26 defined in section 476.42, or if a rate-regulated public
  9 27 utility leases or owns in Iowa, in whole or in part, a new
  9 28 baseload electric power generating facility with a nameplate
  9 29 generating capacity equal to or greater than three hundred
  9 30 megawatts or a combined-cycle electric power generating
  9 31 facility, or a new alternate energy production facility as
  9 32 defined in section 476.42, the board shall specify in advance,
  9 33 by order issued after a contested case proceeding, the
  9 34 ratemaking principles that will apply when the costs of the
  9 35 facility are included in regulated electric rates.
 10  1    b.  In determining the applicable ratemaking principles,
 10  2 the board shall not be limited to traditional ratemaking
 10  3 principles or traditional cost recovery mechanisms.
 10  4    c.  In determining the applicable ratemaking principles,
 10  5 the board shall make the following findings:
 10  6    (1)  The rate-regulated public utility has in effect a
 10  7 board-approved energy efficiency plan as required under
 10  8 section 476.6, subsection 19.
 10  9    (2)  The rate-regulated public utility has demonstrated to
 10 10 the board that the public utility has considered other sources
 10 11 for long-term electric supply and that the facility or lease
 10 12 is reasonable when compared to other feasible alternative
 10 13 sources of supply.  The rate-regulated public utility may
 10 14 satisfy the requirements of this subparagraph through a
 10 15 competitive bidding process, under rules adopted by the board,
 10 16 that demonstrate the facility or lease is a reasonable
 10 17 alternative to meet its electric supply needs.
 10 18    d.  The applicable ratemaking principles shall be
 10 19 determined in a contested case proceeding, which proceeding
 10 20 may be combined with the proceeding for issuance of a
 10 21 certificate conducted pursuant to chapter 476A.
 10 22    e.  The order setting forth the applicable ratemaking
 10 23 principles shall be issued prior to the commencement of
 10 24 construction or lease of the facility.
 10 25    f.  Following issuance of the order, the rate-regulated
 10 26 public utility shall have the option of proceeding with
 10 27 construction or lease of the facility in Iowa, or withdrawing
 10 28 its application for a certificate under chapter 476A.
 10 29    g.  Notwithstanding any provision of this chapter to the
 10 30 contrary, the ratemaking principles established by the order
 10 31 issued pursuant to paragraph "e" shall be binding with regard
 10 32 to the specific electric power generating facility in any
 10 33 subsequent rate proceeding.
 10 34    Sec. 13.  Section 476A.4, Code 2001, is amended by adding
 10 35 the following new subsection:
 11  1    NEW SUBSECTION.  5.  A proceeding for the issuance of a
 11  2 certificate under section 476A.5 may be consolidated with a
 11  3 contested case proceeding for determination of applicable
 11  4 ratemaking principles under section 476.53.
 11  5    Sec. 14.  Section 476A.6, Code 2001, is amended to read as
 11  6 follows:
 11  7    476A.6  DECISION – CRITERIA.
 11  8    The board shall render a decision on the application in an
 11  9 expeditious manner.  A certificate shall be issued to the
 11 10 applicant if the board finds all of the following:
 11 11    1.  The services and operations resulting from the
 11 12 construction of the facility are required by the present or
 11 13 future public convenience, use and necessity consistent with
 11 14 legislative intent as expressed in section 476.53 and the
 11 15 economic development policy of the state as expressed in Title
 11 16 I, subtitle 5, and will not be detrimental to the provision of
 11 17 adequate and reliable electric service.
 11 18    2.  The applicant is willing to perform such services and
 11 19 construct, maintain, and operate the facility pursuant to the
 11 20 provisions of the certificate and this chapter.
 11 21    3.  The construction, maintenance, and operation of the
 11 22 facility will cause minimum adverse be consistent with
 11 23 reasonable land use, and environmental, and aesthetic impact
 11 24 policies and are consonant with reasonable utilization of air,
 11 25 land, and water resources, for beneficial purposes considering
 11 26 available technology and the economics of available
 11 27 alternatives.
 11 28    4.  The applicant, if a public utility as defined in
 11 29 section 476.1, has in effect a comprehensive energy management
 11 30 program designed to reduce peak loads and to increase
 11 31 efficiency of use of energy by all classes of customers of the
 11 32 utility, and the facility in the application is necessary
 11 33 notwithstanding the existence of the comprehensive energy
 11 34 management program.  As used in this subsection, a
 11 35 "comprehensive energy management program" includes at a
 12  1 minimum the following:
 12  2    a.  Establishment of load management and interruptible
 12  3 service programs, where cost effective.
 12  4    b.  Development of wheeling agreements and other energy
 12  5 sharing agreements, where cost effective with utilities that
 12  6 have available capacity.
 12  7    c.  Establishment of cost-effective energy efficiency and
 12  8 renewable energy services and programs.
 12  9    d.  Compliance with board rules on energy management
 12 10 procedures.
 12 11    5.  The applicant, if a public utility as defined in
 12 12 section 476.1, shall demonstrate to the board that the utility
 12 13 has considered sources for long-term electric supply from
 12 14 either purchase of electricity or investment in facilities
 12 15 owned by other persons.
 12 16    6.  The applicant, if a public utility as defined in
 12 17 section 476.1, has considered all feasible alternatives to the
 12 18 proposed facility including nongeneration alternatives; has
 12 19 ranked those alternatives by cost; has implemented the least-
 12 20 cost alternatives first; and the facility in the application
 12 21 is necessary notwithstanding the implementation of these
 12 22 alternatives.
 12 23    Sec. 15.  Section 476A.7, Code 2001, is amended by adding
 12 24 the following new subsection:
 12 25    NEW SUBSECTION.  3.  Pursuant to the provisions of section
 12 26 476.53, a rate-regulated public utility shall have the option
 12 27 of withdrawing its application for issuance of a certificate
 12 28 at any time prior to the issuance of the certificate, or after
 12 29 the certificate has been issued.
 12 30    Sec. 16.  Section 476A.15, Code 2001, is amended to read as
 12 31 follows:
 12 32    476A.15  WAIVER.
 12 33    The board, if it determines that the public interest would
 12 34 not be adversely affected, may waive any of the requirements
 12 35 of this chapter for facilities with a capacity of one hundred
 13  1 or fewer megawatts.
 13  2    Sec. 17.  NEW SECTION.  476A.20  DEFINITIONS.
 13  3    For purposes of this subchapter, unless the context
 13  4 otherwise requires:
 13  5    1.  "Electric power agency" means an entity as defined in
 13  6 section 28F.2.
 13  7    2.  "Facility" means an electric power generating plant, or
 13  8 transmission line or system, as defined in section 476A.1.
 13  9    3.  "Public bond or obligation" means an obligation as
 13 10 defined in section 76.14.
 13 11    Sec. 18.  NEW SECTION.  476A.21  ELECTRIC POWER AGENCY –
 13 12 GENERAL AUTHORITY.
 13 13    In addition to other powers conferred upon an electric
 13 14 power agency by chapter 28F or other applicable law, an
 13 15 electric power agency may enter into and carry out joint
 13 16 agreements with other participants for the acquisition of
 13 17 ownership of a joint facility and for the planning, financing,
 13 18 operation, and maintenance of the joint facility, as provided
 13 19 in this subchapter.
 13 20    Sec. 19.  NEW SECTION.  476A.22  ELECTRIC POWER AGENCY –
 13 21 AUTHORITY – CONFLICTING PROVISIONS.
 13 22    1.  In addition to any powers conferred upon an electric
 13 23 power agency under chapter 28F or other applicable law, an
 13 24 electric power agency may exercise all other powers reasonably
 13 25 necessary or appropriate for or incidental to the effectuation
 13 26 of the electric power agency's authorized purposes, including
 13 27 without limitation, the powers enumerated in chapters 6A and
 13 28 6B for purposes of constructing or acquiring an electric power
 13 29 facility.
 13 30    2.  An electric power agency, in connection with its
 13 31 property and affairs, and in connection with property within
 13 32 its control, may exercise any and all powers that might be
 13 33 exercised by a natural person or a private corporation in
 13 34 connection with similar property and affairs.
 13 35    3.  The enumeration of specified powers and functions of an
 14  1 electric power agency in this subchapter is not a limitation
 14  2 of the powers of an electric power agency, but the procedures
 14  3 prescribed for exercising the powers and functions enumerated
 14  4 in this subchapter control and govern in the event of any
 14  5 conflict with any other provision of law.
 14  6    4.  The authority conferred pursuant to this subchapter
 14  7 applies to electric power agencies, notwithstanding any
 14  8 contrary provisions of section 28F.1.
 14  9    Sec. 20.  NEW SECTION.  476A.23  ISSUANCE OF PUBLIC BONDS
 14 10 OR OBLIGATIONS – PURPOSES – LIMITATIONS.
 14 11    1.  An electric power agency may from time to time issue
 14 12 its public bonds or obligations in such principal amounts as
 14 13 the electric power agency deems necessary to provide
 14 14 sufficient funds to carry out any of its purposes and powers,
 14 15 including but not limited to any of the following:
 14 16    a.  The acquisition or construction of any project to be
 14 17 owned or leased by the electric power agency, or the
 14 18 acquisition of any interest in such project or any right to
 14 19 the capacity of such project, including the acquisition,
 14 20 construction, or acquisition of any interest in an electric
 14 21 power generating plant to be constructed in this state, or the
 14 22 acquisition, construction, or acquisition of any interest in a
 14 23 transmission line or system.
 14 24    b.  The funding or refunding of the principal of, or
 14 25 interest or redemption premiums on, any public bonds or
 14 26 obligations issued by the electric power agency whether or not
 14 27 the public bonds or obligations or interest to be funded or
 14 28 refunded have become due.
 14 29    c.  The establishment or increase of reserves to secure or
 14 30 to pay the public bonds or obligations or interest on the
 14 31 public bonds or obligations.
 14 32    d.  The payment of all other costs or expenses of the
 14 33 electric power agency incident to and necessary to carry out
 14 34 its purposes and powers.
 14 35    2.  Notwithstanding anything in this subchapter or chapter
 15  1 28F to the contrary, a facility shall not be financed with the
 15  2 proceeds of public bonds or obligations, the interest on which
 15  3 is exempt from federal income tax, unless the public issuer of
 15  4 such public bonds or obligations covenants that the issuer
 15  5 shall comply with the requirements or limitations imposed by
 15  6 the Internal Revenue Code or other applicable federal law to
 15  7 preserve the tax exemption of interest payable on the bonds or
 15  8 obligations.
 15  9    3.  Notwithstanding anything in this subchapter or chapter
 15 10 28F to the contrary, an electric power generating facility
 15 11 shall not be financed under this subchapter unless all of the
 15 12 following conditions are satisfied:
 15 13    a.  The portion of the electric power generating facility
 15 14 financed by the electric power agency is not designed to serve
 15 15 the electric power requirements of retail customers of members
 15 16 that are municipal electric utilities established in the state
 15 17 after January 1, 2001.
 15 18    b.  The electric power agency annually files with the
 15 19 board, in a manner to be determined by the board, information
 15 20 regarding sales from the electric power generating facility in
 15 21 sufficient detail to determine compliance with these
 15 22 provisions.
 15 23    The board shall report to the general assembly if any of
 15 24 the provisions are being violated.
 15 25    Sec. 21.  NEW SECTION.  476A.24  PUBLIC BONDS OR
 15 26 OBLIGATIONS AUTHORIZED BY RESOLUTION OF BOARD – TERMS.
 15 27    1.  The board of directors of an electric power agency, by
 15 28 resolution, may authorize the issuance of public bonds or
 15 29 obligations of the electric power agency.
 15 30    2.  The public bonds or obligations may be issued in one or
 15 31 more series under the resolution or under a trust indenture or
 15 32 other security agreement.
 15 33    3.  The resolution, trust indenture, or other security
 15 34 agreement, with respect to such public bonds or obligations,
 15 35 shall provide for all of the following:
 16  1    a.  The date on the public bonds or obligations.
 16  2    b.  The time of maturity.
 16  3    c.  The rate of interest.
 16  4    d.  The denomination.
 16  5    e.  The form, either coupon or registered.
 16  6    f.  The conversion, registration, and exchange privileges.
 16  7    g.  The rank or priority.
 16  8    h.  The manner of execution.
 16  9    i.  The medium of payment, including the place of payment,
 16 10 either within or outside of the state.
 16 11    j.  The terms of redemption, either with or without
 16 12 premium.
 16 13    k.  Such other terms and conditions as set forth by the
 16 14 board in the resolution, trust indenture, or other security
 16 15 agreement.
 16 16    4.  Public bonds or obligations authorized by the board of
 16 17 directors shall not be subject to any restriction under other
 16 18 law with respect to the amount, maturity, interest rate, or
 16 19 other terms of obligation of a public agency or private
 16 20 person.
 16 21    5.  Chapter 75 shall not apply to public bonds or
 16 22 obligations authorized by the board of directors as provided
 16 23 in this section.
 16 24    Sec. 22.  NEW SECTION.  476A.25  PUBLIC BONDS OR
 16 25 OBLIGATIONS PAYABLE SOLELY FROM AGENCY REVENUES OR FUNDS.
 16 26    1.  The principal of and interest on any public bonds or
 16 27 obligations issued by an electric power agency shall be
 16 28 payable solely from the revenues or funds pledged or available
 16 29 for their payment as authorized in this subchapter.
 16 30    2.  Each public bond or obligation shall contain all of the
 16 31 following terms:
 16 32    a.  That the principal of or interest on such public bonds
 16 33 or obligations is payable solely from revenues or funds of the
 16 34 electric power agency.
 16 35    b.  That neither the state or a political subdivision of
 17  1 the state other than the electric power agency, nor a public
 17  2 agency that is a member of the electric power agency is
 17  3 obligated to pay the principal or interest on such public
 17  4 bonds or obligations.
 17  5    c.  That neither the full faith and credit nor the taxing
 17  6 power of the state, of any political subdivision of the state,
 17  7 or of any such public agency is pledged to the payment of the
 17  8 principal of or the interest on the public bonds or
 17  9 obligations.
 17 10    Sec. 23.  NEW SECTION.  476A.26  PUBLIC BONDS OR
 17 11 OBLIGATIONS – TYPES – SOURCES FOR PAYMENT – SECURITY.
 17 12    1.  Except as otherwise expressly provided by this
 17 13 subchapter or by the electric power agency, every issue of
 17 14 public bonds or obligations of the electric power agency shall
 17 15 be payable out of any revenues or funds of the electric power
 17 16 agency, subject only to any agreements with the holders of
 17 17 particular public bonds or obligations pledging any particular
 17 18 revenues or funds.
 17 19    2.  An electric power agency may issue types of public
 17 20 bonds or obligations as it may determine, including public
 17 21 bonds or obligations as to which the principal and interest
 17 22 are payable exclusively from the revenues from one or more
 17 23 projects, or from an interest in such project or projects, or
 17 24 a right to capacity of such project or projects, or from any
 17 25 revenue-producing contract made by the electric power agency
 17 26 with any person, or from its revenues generally.
 17 27    3.  Any public bonds or obligations may be additionally
 17 28 secured by a pledge of any grant, subsidy, or contribution
 17 29 from any public agency or other person, or a pledge of any
 17 30 income or revenues, funds, or moneys of the electric power
 17 31 agency from any other source.
 17 32    Sec. 24.  NEW SECTION.  476A.27  PUBLIC BONDS OR
 17 33 OBLIGATIONS AND RATES FOR DEBT SERVICE NOT SUBJECT TO STATE
 17 34 APPROVAL.
 17 35    Public bonds or obligations of an electric power agency may
 18  1 be issued under this subchapter, and rents, rates, and charges
 18  2 may be established in the same manner as provided in section
 18  3 28F.5 and pledged for the security of public bonds or
 18  4 obligations and interest and redemption premiums on such
 18  5 public bonds or obligations, without obtaining the consent of
 18  6 any department, division, commission, board, bureau, or agency
 18  7 of the state and without any other proceeding or the happening
 18  8 of any other condition or occurrence, except as specifically
 18  9 required by this subchapter.
 18 10    Sec. 25.  NEW SECTION.  476A.28  PUBLIC BONDS OR
 18 11 OBLIGATIONS TO BE NEGOTIABLE.
 18 12    All public bonds or obligations of an electric power agency
 18 13 shall be negotiable within the meaning and for all of the
 18 14 purposes of the uniform commercial code, chapter 554, subject
 18 15 only to the registration requirement of section 76.10.
 18 16    Sec. 26.  NEW SECTION.  476A.29  VALIDITY OF PUBLIC BONDS
 18 17 OR OBLIGATIONS AT DELIVERY – TEMPORARY BONDS.
 18 18    1.  Any public bonds or obligations may be issued and
 18 19 delivered, notwithstanding that one or more of the officers
 18 20 executing them shall have ceased to hold office at the time
 18 21 when the public bonds or obligations are actually delivered.
 18 22    2.  Pending preparation of definitive bonds or obligations,
 18 23 an electric power agency may issue temporary bonds or
 18 24 obligations that shall be exchanged for the definitive bonds
 18 25 or obligations upon their issuance.
 18 26    Sec. 27.  NEW SECTION.  476A.30  PUBLIC OR PRIVATE SALE OF
 18 27 BONDS AND NOTES.
 18 28    Public bonds or obligations of an electric power agency may
 18 29 be sold at public or private sale for a price and in a manner
 18 30 determined by the electric power agency.
 18 31    Sec. 28.  NEW SECTION.  476A.31  PUBLIC BONDS OR
 18 32 OBLIGATIONS AS SUITABLE INVESTMENTS FOR GOVERNMENTAL UNITS,
 18 33 FINANCIAL INSTITUTIONS, AND FIDUCIARIES.
 18 34    The following persons may legally invest any debt service
 18 35 funds, money, or other funds belonging to such person or
 19  1 within such person's control in any public bonds or
 19  2 obligations issued pursuant to this subchapter:
 19  3    1.  A bank, trust company, savings association, building
 19  4 and loan association, savings and loan association, or
 19  5 investment company.
 19  6    2.  An insurance company, insurance association, or any
 19  7 other person carrying on an insurance business.
 19  8    3.  An executor, administrator, conservator, trustee, or
 19  9 other fiduciary.
 19 10    4.  Any other person authorized to invest in bonds or
 19 11 obligations of the state.
 19 12    Sec. 29.  NEW SECTION.  476A.32  RESOLUTION, TRUST
 19 13 INDENTURE, OR SECURITY AGREEMENT CONSTITUTES CONTRACT –
 19 14 PROVISIONS.
 19 15    The resolution, trust indenture, or other security
 19 16 agreement under which any public bonds or obligations are
 19 17 issued shall constitute a contract with the holders of the
 19 18 public bonds or obligations, and may contain provisions, among
 19 19 others, prescribing any of the following terms:
 19 20    1.  The terms and provisions of the public bonds or
 19 21 obligations.
 19 22    2.  The mortgage or pledge of and the grant of a security
 19 23 interest in any real or personal property and all or any part
 19 24 of the revenue from any project or any revenue producing
 19 25 contract made by the electric power agency with any person to
 19 26 secure the payment of public bonds or obligations, subject to
 19 27 any agreements with the holders of public bonds or obligations
 19 28 which might then exist.
 19 29    3.  The custody, collection, securing, investment, and
 19 30 payment of any revenues, assets, money, funds, or property
 19 31 with respect to which the electric power agency may have any
 19 32 rights or interest.
 19 33    4.  The rates or charges for electric energy sold by, or
 19 34 services rendered by, the electric power agency, the amount to
 19 35 be raised by the rates or charges, and the use and disposition
 20  1 of any or all revenue.
 20  2    5.  The creation of reserves or debt service funds and the
 20  3 regulation and disposition of such reserves or funds.
 20  4    6.  The purposes to which the proceeds from the sale of any
 20  5 public bonds or obligations to be issued may be applied, and
 20  6 the pledge of the proceeds to secure the payment of the public
 20  7 bonds or obligations.
 20  8    7.  Limitations on the issuance of any additional public
 20  9 bonds or obligations, the terms upon which additional public
 20 10 bonds or obligations may be issued and secured, and the
 20 11 refunding of outstanding public bonds or obligations.
 20 12    8.  The rank or priority of any public bonds or obligations
 20 13 with respect to any lien or security.
 20 14    9.  The creation of special funds or moneys to be held for
 20 15 operating expenses, payment, or redemption of public bonds or
 20 16 obligations, reserves or other purposes, and the use and
 20 17 disposition of moneys held in these funds.
 20 18    10.  The procedure by which the terms of any contract with
 20 19 or for the benefit of the holders of public bonds or
 20 20 obligations may be amended or abrogated, the amount of public
 20 21 bonds or obligations the holders of which must consent to such
 20 22 amendment or abrogation, and the manner in which consent may
 20 23 be given.
 20 24    11.  The definition of the acts or omissions to act that
 20 25 constitute a default in the duties of the electric power
 20 26 agency to holders of its public bonds or obligations, and the
 20 27 rights and remedies of the holders in the event of default
 20 28 including, if the electric power agency so determines, the
 20 29 right to accelerate the date of the maturation of the public
 20 30 bonds or obligations or the right to appoint a receiver or
 20 31 receivers of the property or revenues subject to the lien of
 20 32 the resolution, trust indenture, or other security agreement.
 20 33    12.  Any other or additional agreements with or for the
 20 34 benefit of the holders of public bonds or obligations or any
 20 35 covenants or restrictions necessary or desirable to safeguard
 21  1 the interests of the holders.
 21  2    13.  The custody of any of the electric power agency's
 21  3 property or investments, the safekeeping of such property or
 21  4 investments, the insurance to be carried on such property or
 21  5 investments, and the use and disposition of insurance
 21  6 proceeds.
 21  7    14.  The vesting in a trustee or trustees, within or
 21  8 outside the state, of such property, rights, powers, and
 21  9 duties as the electric power agency may determine; or the
 21 10 limiting or abrogating of the rights of the holders of any
 21 11 public bonds or obligations to appoint a trustee, or the
 21 12 limiting of the rights, powers, and duties of such trustee.
 21 13    15.  The appointment of and the establishment of the duties
 21 14 and obligations of any paying agent or other fiduciary within
 21 15 or outside the state.
 21 16    Sec. 30.  NEW SECTION.  476A.33  MORTGAGE OR TRUST DEED TO
 21 17 SECURE BONDS.
 21 18    For the security of public bonds or obligations issued or
 21 19 to be issued by an electric power agency, the electric power
 21 20 agency may mortgage or execute deeds of trust of the whole or
 21 21 any part of its property.
 21 22    Sec. 31.  NEW SECTION.  476A.34  NO PERSONAL LIABILITY ON
 21 23 PUBLIC BONDS OR OBLIGATIONS.
 21 24    An official, director, member of an electric power agency,
 21 25 or any person executing public bonds or obligations shall not
 21 26 be liable personally on the public bonds or obligations or be
 21 27 subject to any personal liability or accountability by reason
 21 28 of the issuance of such public bonds or obligations.
 21 29    Sec. 32.  NEW SECTION.  476A.35  REPURCHASE OF SECURITIES.
 21 30    An electric power agency may purchase public bonds or
 21 31 obligations out of any funds available for such purchase, and
 21 32 hold, pledge, cancel, or resell the public bonds or
 21 33 obligations, subject to and in accordance with any agreements
 21 34 with the holders.
 21 35    Sec. 33.  NEW SECTION.  476A.36  PLEDGE OF REVENUE AS
 22  1 SECURITY.
 22  2    An electric power agency may pledge its rates, rents, and
 22  3 other revenues, or any part of such rates, rents, and
 22  4 revenues, as security for the repayment, with interest and
 22  5 redemption premiums, if any, of the moneys borrowed by the
 22  6 electric power agency or advanced to the electric power agency
 22  7 for any of its authorized purposes and as security for the
 22  8 payment of moneys due and owed by the electric power agency
 22  9 under any contract.
 22 10    Sec. 34.  Section 478.3, Code 2001, is amended by adding
 22 11 the following new subsection:
 22 12    NEW SUBSECTION.  3.  For the purpose of this section, the
 22 13 term "public" shall not be interpreted to be limited to
 22 14 consumers located in this state.
 22 15    Sec. 35.  CODE EDITOR DIRECTIVE.  The Code editor shall
 22 16 change references to "this chapter" in sections 476A.1 through
 22 17 476A.15 as necessary and appropriate to reflect the addition
 22 18 of the new subchapter to chapter 476A as a result of this Act.
 22 19    Sec. 36.  EFFECTIVE DATE.  This Act, being deemed of
 22 20 immediate importance, takes effect upon enactment.  
 22 21 
 22 22 
 22 23                                                             
 22 24                               BRENT SIEGRIST
 22 25                               Speaker of the House
 22 26 
 22 27 
 22 28                                                             
 22 29                               MARY E. KRAMER
 22 30                               President of the Senate
 22 31 
 22 32    I hereby certify that this bill originated in the House and
 22 33 is known as House File 577, Seventy-ninth General Assembly.
 22 34 
 22 35 
 23  1                                                             
 23  2                               MARGARET THOMSON
 23  3                               Chief Clerk of the House
 23  4 Approved                , 2001
 23  5 
 23  6 
 23  7                            
 23  8 THOMAS J. VILSACK
 23  9 Governor
     

Text: HF00576                           Text: HF00578
Text: HF00500 - HF00599                 Text: HF Index
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