Text: HSB00152 Text: HSB00154 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.6, Code 2001, is amended by adding 1 2 the following new subsections: 1 3 NEW SUBSECTION. 16A. POWER PURCHASE CONTRACTS. 1 4 a. A rate-regulated public utility shall file with the 1 5 board any contract for the purchase of electric power to serve 1 6 Iowa retail electric consumers if the contract meets all of 1 7 the following conditions: 1 8 (1) The contract term is for a period of five years or 1 9 longer. 1 10 (2) The amount of power purchased equals or exceeds five 1 11 percent of the public utility's Iowa retail load. 1 12 (3) The power is being purchased from a new electric power 1 13 generating facility that is being planned or is under 1 14 construction as of the date of the contract. 1 15 b. A public utility, at its option, may file with the 1 16 board other contracts for the purchase of electric power. 1 17 c. The board shall issue its decision within ninety days 1 18 after the public utility's filing. 1 19 d. The board shall approve the contract if it finds, after 1 20 a contested case proceeding, that the terms of the contract 1 21 are reasonable and prudent. 1 22 e. Board approval of a contract shall constitute an 1 23 irrevocable determination of the prudence and reasonableness 1 24 of the contract and its terms. 1 25 f. The costs of the contract shall be included in the 1 26 public utility's regulated retail electric rates and, at the 1 27 option of the public utility, may be recovered through an 1 28 automatic adjustment of rates as provided in subsection 11. 1 29 g. The board shall adopt rules pursuant to chapter 17A 1 30 regarding the filing and approval of contracts under this 1 31 subsection. 1 32 NEW SUBSECTION. 16B. ELECTRIC POWER GENERATING FACILITY 1 33 EMISSIONS. 1 34 a. Each public utility that is an owner of one or more 1 35 electric power generating facilities fueled by coal and 2 1 located in this state on June 1, 2001, shall develop a 2 2 multiyear plan and budget for managing regulated emissions 2 3 from its facilities in a cost-effective manner. 2 4 (1) The initial multiyear plan and budget shall be filed 2 5 with the board by October 1, 2001. Updates to the plan and 2 6 budget shall be filed at least every twenty-four months. 2 7 (2) Copies of the initial plan and budget, as well as any 2 8 subsequent updates, shall be served on the environmental 2 9 protection division of the department of natural resources. 2 10 (3) The initial multiyear plan and budget and any 2 11 subsequent updates shall be considered in a contested case 2 12 proceeding pursuant to chapter 17A. The environmental 2 13 protection division of the department of natural resources and 2 14 the consumer advocate shall participate as parties to the 2 15 proceeding. 2 16 (4) The department of natural resources shall state 2 17 whether the plan or update meets applicable state 2 18 environmental requirements for regulated emissions. If the 2 19 plan does not meet these requirements, the department shall 2 20 recommend amendments that outline actions necessary to bring 2 21 the plan or update into compliance with the environmental 2 22 requirements. 2 23 b. The board shall not approve a plan or update that does 2 24 not meet applicable state environmental requirements for 2 25 regulated emissions from electric power generating facilities 2 26 located in the state. 2 27 c. The board shall review the plan or update and the 2 28 associated budget, and shall approve the plan or update and 2 29 the associated budget if the plan or update and the associated 2 30 budget are consistent with the electric energy policy of this 2 31 state as developed pursuant to section 476.53, and if the plan 2 32 or update and the associated budget reasonably balance costs, 2 33 environmental requirements, economic development potential, 2 34 and the reliability of the electric utility and generation 2 35 system. 3 1 d. The board shall issue an order approving or rejecting a 3 2 plan, update, or budget within one hundred eighty days after 3 3 the public utility's filing. 3 4 e. The reasonable costs incurred by a rate-regulated 3 5 public utility in preparing and filing the plan, update, or 3 6 budget and in participating in the proceedings before the 3 7 board and the costs of the approved budget and any approved 3 8 amendments shall be included in its regulated retail rates. 3 9 f. The board shall adopt rules pursuant to chapter 17A 3 10 regarding the filing and approval of plans and budgets under 3 11 this subsection. 3 12 Sec. 2. Section 476.53, Code 2001, is amended by striking 3 13 the section and inserting in lieu thereof the following: 3 14 476.53 ELECTRIC GENERATING FACILITIES. 3 15 1. It is the intent of the general assembly to attract the 3 16 development of electric power generating within the state in 3 17 sufficient quantity to ensure reliable electric service to 3 18 Iowa consumers and provide economic benefits to the state. 3 19 2. The general assembly's intent with regard to the 3 20 development of electric power generating facilities, as 3 21 provided in subsection 1, shall be implemented in a manner 3 22 that is cost-effective and compatible with the environmental 3 23 policies of the state, as expressed in Title XI. 3 24 3. The board shall report to the general assembly by 3 25 January 21, 2002, and biennially thereafter, regarding the 3 26 actions it recommends be taken to implement the general 3 27 assembly's intent as stated in subsection 1, in developing the 3 28 state's electric energy policy. The report shall include an 3 29 assessment of the adequacy of the board's authority to provide 3 30 sufficient incentives and assurances of cost recovery to 3 31 implement the general assembly's intent. 3 32 Sec. 3. Section 476A.6, Code 2001, is amended to read as 3 33 follows: 3 34 476A.6 DECISION – CRITERIA. 3 35 The board shall render a decision on the application in an 4 1 expeditious manner. A certificate shall be issued to the 4 2 applicant if the board finds all of the following: 4 3 1. The services and operations resulting from the 4 4 construction of the facility arerequired by the present or4 5future public convenience, use and necessitycompatible with 4 6 the energy policy of the state as developed under section 4 7 476.53 and the economic development policy of the state as 4 8 expressed in Title I, subtitle 5, and will not be detrimental 4 9 to the provision of adequate and reliable electric service. 4 10 2. The applicant is willing toperform such services and4 11 construct, maintain, and operate the facility pursuant to the 4 12 provisions of the certificate and this chapter. 4 13 3. The construction, maintenance, and operation of the 4 14 facility willcause minimum adversebe consistent with 4 15 reasonable land use,and environmental, and aesthetic impact4 16 policies andareconsonant with reasonable utilization of air, 4 17 land, and water resources,for beneficial purposesconsidering 4 18 reasonably available technologyand the economics of available4 19alternatives. 4 204. The applicant, if a public utility as defined in4 21section 476.1, has in effect a comprehensive energy management4 22program designed to reduce peak loads and to increase4 23efficiency of use of energy by all classes of customers of the4 24utility, and the facility in the application is necessary4 25notwithstanding the existence of the comprehensive energy4 26management program. As used in this subsection, a4 27"comprehensive energy management program" includes at a4 28minimum the following:4 29a. Establishment of load management and interruptible4 30service programs, where cost effective.4 31b. Development of wheeling agreements and other energy4 32sharing agreements, where cost effective with utilities that4 33have available capacity.4 34c. Establishment of cost-effective energy efficiency and4 35renewable energy services and programs.5 1d. Compliance with board rules on energy management5 2procedures.5 35. The applicant, if a public utility as defined in5 4section 476.1, shall demonstrate to the board that the utility5 5has considered sources for long-term electric supply from5 6either purchase of electricity or investment in facilities5 7owned by other persons.5 86. The applicant, if a public utility as defined in5 9section 476.1, has considered all feasible alternatives to the5 10proposed facility including nongeneration alternatives; has5 11ranked those alternatives by cost; has implemented the least-5 12cost alternatives first; and the facility in the application5 13is necessary notwithstanding the implementation of these5 14alternatives.5 15 Sec. 4. Section 476A.15, Code 2001, is amended to read as 5 16 follows: 5 17 476A.15 WAIVER. 5 18 The board, if it determines that the public interest would 5 19 not be adversely affected, may waive any of the requirements 5 20 of this chapterfor facilities with a capacity of one hundred5 21or fewer megawatts. 5 22 Sec. 5. Section 478.3, subsection 1, paragraph h, Code 5 23 2001, is amended to read as follows: 5 24 h. An allegation that the proposed construction is 5 25 necessary to serve a public use. This allegation shall be 5 26 satisfied if an order of the federal energy regulatory 5 27 commission or its successor, directing that the project be 5 28 constructed, is filed with the board. 5 29 Sec. 6. Section 478.3, Code 2001, is amended by adding the 5 30 following new subsection: 5 31 NEW SUBSECTION. 3. For the purpose of this section, the 5 32 term "public" shall not be interpreted to be limited to 5 33 consumers located in this state. 5 34 Sec. 7. EMERGENCY RULES. 5 35 1. The utilities division of the department of commerce 6 1 may adopt emergency rules to implement this Act. 6 2 2. If the utilities division of the department of commerce 6 3 adopts emergency rules under section 17A.4, subsection 2, and 6 4 section 17A.5, subsection 2, paragraph "b", to implement this 6 5 Act, the rules shall become effective immediately upon filing, 6 6 unless a later effective date is specified in the rules. Any 6 7 rules adopted in accordance with the provisions of this 6 8 section shall also be published as notice of intended action 6 9 as provided in section 17A.4. 6 10 EXPLANATION 6 11 This bill makes changes to provisions in Code chapter 476A, 6 12 relating to siting for electric plant generators, as well as 6 13 making related changes in other parts of the Code. 6 14 The bill amends Code section 476A.6 to provide that the 6 15 board shall issue a certificate if it finds three criteria 6 16 have been met: (1) the services and operations resulting from 6 17 the construction of the facility are compatible with the 6 18 electric energy policy and the economic development policy of 6 19 the state as expressed in the Code, and will not be 6 20 detrimental to the provision of adequate and reliable electric 6 21 service; (2) the applicant is willing to construct, maintain, 6 22 and operate the facility pursuant to the provisions of the 6 23 certificate and Code chapter 476A; and (3) the construction, 6 24 maintenance, and operation of the facility will be consistent 6 25 with reasonable land use and environmental policy, and 6 26 consonant with reasonable utilization of air, land, and water 6 27 resources, considering reasonably available technology. 6 28 These criteria replace prior statements regarding present 6 29 or future public convenience, use, and necessity; minimum 6 30 adverse land use; aesthetic impact; beneficial purposes 6 31 considering the economics of available alternatives; details 6 32 of a comprehensive energy management program by the public 6 33 utility, including load management, interruptible service, 6 34 wheeling agreements and other energy sharing agreements, and 6 35 energy efficiency and renewable energy services and programs; 7 1 long-term electric supply; and nongeneration alternatives. 7 2 The bill amends Code section 476A.15, to allow waiver by 7 3 the utilities board of any of the requirements of Code chapter 7 4 476A if it determines that the public interest would not be 7 5 adversely affected. The Code currently allows waivers only 7 6 for facilities with a capacity of 100 or fewer megawatts. 7 7 The bill adds a new subsection to Code section 476.6 7 8 regarding board approval of contracts by rate-regulated public 7 9 utilities to purchase power. If the contract meets all of the 7 10 following criteria, the utility shall file the contract with 7 11 the board, and may recover the costs of the contract in 7 12 regulated retail electric rates, including through an 7 13 automatic adjustment of rates: (1) the contract is for five 7 14 years or longer; (2) the amount of power purchased equals or 7 15 exceeds 5 percent of the utility's Iowa retail load; (3) the 7 16 power is being purchased from a new electric power generation 7 17 facility being planned or under construction as of the date of 7 18 the contract. The utility may choose to seek approval of 7 19 other contracts for the purchase of electric power. The board 7 20 shall issue its decision within 90 days of the utility's 7 21 filing. The board shall approve the contract if, after a 7 22 contested case proceeding, it finds that the terms of the 7 23 contract are reasonable and prudent. Approval by the board 7 24 shall constitute an irrevocable determination of the prudence 7 25 and reasonableness of the contract and its terms. 7 26 A new subsection is also added to Code section 476.6 7 27 regarding emissions from electric power generating facilities. 7 28 Coal-fired facilities located in the state on June 1, 2001, 7 29 are required to develop multiyear plans and budgets for 7 30 managing regulated emissions from the facility in a cost- 7 31 effective manner. The initial plan and budget must be filed 7 32 by October 1, 2001, and updates shall be filed at least every 7 33 24 months. Copies of the initial plan, budget, and updates 7 34 shall be served on the environmental protection division of 7 35 the department of natural resources and the consumer advocate. 8 1 The plan, budget, and updates shall be considered in a 8 2 contested case proceeding, and the department of natural 8 3 resources and consumer advocate shall participate as parties. 8 4 The department of natural resources shall state whether the 8 5 plan or update meets applicable state environmental 8 6 requirements for regulated emissions, and if not, shall 8 7 recommend amendments to bring the plan into compliance with 8 8 requirements. The board shall not approve a plan that does 8 9 not meet applicable state requirements for regulated 8 10 emissions. The board shall approve a plan or update and the 8 11 associated budget if it is consistent with the electric energy 8 12 policy developed under Code section 476.53, and reasonably 8 13 balances costs, environmental requirements, economic 8 14 development potential, and the reliability of the electric 8 15 utility and generation system. The board shall issue an order 8 16 approving or rejecting a plan or update and the associated 8 17 budget within 180 days after the filing. The reasonable costs 8 18 incurred in preparing and filing the plan or update and 8 19 associated budget shall be included in regulated retail rates. 8 20 The bill also amends Code section 476.53 by inserting 8 21 completely new language. The new language states that the 8 22 intent of the general assembly is to attract the development 8 23 of electric power generating facilities within the state in 8 24 sufficient quantity to ensure reliable electric service to 8 25 Iowa consumers and provide economic benefits to the state, 8 26 implemented in a manner that is cost-effective and compatible 8 27 with the environmental policies of the state, as expressed in 8 28 the Code. To that end, the board is directed to report to the 8 29 general assembly on January 21, 2002, and every two years 8 30 thereafter, regarding the actions it recommends be taken to 8 31 implement the general assembly's intent, in developing the 8 32 state's energy policy. The report shall specifically include 8 33 an assessment of the adequacy of the board's authority to 8 34 provide sufficient incentives and assurances of cost recovery 8 35 to implement the general assembly's intent. 9 1 The bill also amends Code section 478.3, regarding 9 2 petitions for electric transmission lines, to address the 9 3 federal regulatory process that governs many of the same 9 4 activities regulated under state law, and to specify that the 9 5 definition of "public" should not be limited to consumers of 9 6 the state of Iowa. 9 7 The bill also allows the utilities division of the 9 8 department of commerce to adopt emergency rules, so that rules 9 9 are in place by the Act's effective date. 9 10 LSB 2443YC 79 9 11 jj/cf/24
Text: HSB00152 Text: HSB00154 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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