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PAG LIN 1 1 Amend House File 577, as amended, passed, and 1 2 reprinted by the House, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "Section 1. Section 12C.1, subsection 1, Code 1 6 2001, as amended by 2001 Iowa Acts, House File 637, 1 7 section 4, is amended to read as follows: 1 8 1. All funds held by the following officers or 1 9 institutions shall be deposited in one or more 1 10 depositories first approved by the appropriate 1 11 governing body as indicated: for the treasurer of 1 12 state, by the executive council; for judicial officers 1 13 and court employees, by the supreme court; for the 1 14 county treasurer, recorder, auditor, and sheriff, by 1 15 the board of supervisors; for the city treasurer or 1 16 other designated financial officer of a city, by the 1 17 city council; for the county public hospital or merged 1 18 area hospital, by the board of hospital trustees; for 1 19 a memorial hospital, by the memorial hospital 1 20 commission; for a school corporation, by the board of 1 21 school directors; for a city utility or combined 1 22 utility system established under chapter 388, by the 1 23 utility board; for a library service area established 1 24 under chapter 256, by the library service area board 1 25 of trustees; and for an electric power agency as 1 26 defined in section 28F.2 or 476A.20, by the governing 1 27 body of the electric power agency. However, the 1 28 treasurer of state and the treasurer of each political 1 29 subdivision or the designated financial officer of a 1 30 city shall invest all funds not needed for current 1 31 operating expenses in time certificates of deposit in 1 32 approved depositories pursuant to this chapter or in 1 33 investments permitted by section 12B.10. The list of 1 34 public depositories and the amounts severally 1 35 deposited in the depositories are matters of public 1 36 record. This subsection does not limit the definition 1 37 of "public funds" contained in subsection 2. 1 38 Notwithstanding provisions of this section to the 1 39 contrary, public funds of a state government deferred 1 40 compensation plan established by the executive council 1 41 may also be invested in the investment products 1 42 authorized under section 509A.12. 1 43 Sec. 2. Section 12C.1, subsection 2, paragraph b, 1 44 Code 2001, is amended to read as follows: 1 45 b. "Public funds" and "public deposits" mean the 1 46 moneys of the state or a political subdivision or 1 47 instrumentality of the state including a county, 1 48 school corporation, special district, drainage 1 49 district, unincorporated town or township, 1 50 municipality, or municipal corporation or any agency, 2 1 board, or commission of the state or a political 2 2 subdivision; any court or public body noted in 2 3 subsection 1; a legal or administrative entity created 2 4 pursuant to chapter 28E; an electric power agency as 2 5 defined in section 28F.2 or 476A.20; and federal and 2 6 state grant moneys of a quasi-public state entity that 2 7 are placed in a depository pursuant to this chapter. 2 8 Sec. 3. Section 28F.2, Code 2001, is amended to 2 9 read as follows: 2 10 28F.2 DEFINITIONS. 2 11 As used in this chapter, unless the context 2 12 otherwise requires: 2 13 1.The terms "public"Public agency", "state", and 2 14 "private agency" shall have the meanings prescribed by 2 15 section 28E.2. 2 16 2.The term "project""Project" or "projects" 2 17shall meanmeans any works or facilities referred to 2 18 in section 28F.1 and shall include all property real 2 19 and personal, pertinent thereto or connected with such 2 20 project or projects, and the existing works or 2 21 facilities, if any, to which such project or projects 2 22 are an extension, addition, betterment or improvement. 2 23 3. "Electric power agency" means an entity 2 24 financing or acquiring electric power facilities 2 25 pursuant to this chapter or chapter 28E or 476A. 2 26 Sec. 4. Section 427.1, subsection 2, Code 2001, is 2 27 amended to read as follows: 2 28 2. MUNICIPAL AND MILITARY PROPERTY. The property 2 29 of a county, township, city, school corporation, levee 2 30 district, drainage district, or the Iowa national 2 31 guard, when devoted to public use and not held for 2 32 pecuniary profit, except property of a municipally 2 33 owned electric utility held under joint ownership and 2 34 property of an electric power facility financed under 2 35 chapter 28Fwhichor 476A that shall be subject to 2 36 taxation under chapter 437A and facilities of a 2 37 municipal utility that are used for the provision of 2 38 local exchange services pursuant to chapter 476, but 2 39 only to the extent such facilities are used to provide 2 40 such services, which shall be subject to taxation 2 41 under chapter 433, except that section 433.11 shall 2 42 not apply. The exemption for property owned by a city 2 43 or county also applies to property which is operated 2 44 by a city or county as a library, art gallery or 2 45 museum, conservatory, botanical garden or display, 2 46 observatory or science museum, or as a location for 2 47 holding athletic contests, sports or entertainment 2 48 events, expositions, meetings or conventions, or 2 49 leased from the city or county for any such purposes, 2 50 or leased from the city or county by the Iowa national 3 1 guard or by a federal agency for the benefit of the 3 2 Iowa national guard when devoted for public use and 3 3 not for pecuniary profit. Food and beverages may be 3 4 served at the events or locations without affecting 3 5 the exemptions, provided the city has approved the 3 6 serving of food and beverages on the property if the 3 7 property is owned by the city or the county has 3 8 approved the serving of food and beverages on the 3 9 property if the property is owned by the county. 3 10 Sec. 5. Section 437A.3, subsection 17, paragraph 3 11 b, Code 2001, is amended to read as follows: 3 12 b. An electric power generating plant where the 3 13 acquisition cost of all interests acquired exceeds ten 3 14 million dollars. For purposes of this paragraph, 3 15 "electric power generating plant" means each nameplate 3 16 rated electric power generating plant owned solely or 3 17 jointly by any person or electric power facility 3 18 financed under the provisions of chapter 28F or 476A 3 19 in which electrical energy is produced from other 3 20 forms of energy, including all equipment used in the 3 21 production of such energy through its step-up 3 22 transformer. 3 23 Sec. 6. Section 437A.6, subsection 1, paragraph b, 3 24 Code 2001, is amended to read as follows: 3 25 b. Facilities owned by or leased to a municipal 3 26 utility when devoted to public use and not held for 3 27 pecuniary profit, except facilities of a municipally 3 28 owned electric utility held under joint ownership or 3 29 lease and facilities of an electric power facility 3 30 financed under chapter 28F or 476A. 3 31 Sec. 7. Section 437A.7, subsection 2, paragraph a, 3 32 Code 2001, is amended to read as follows: 3 33 a. Transmission lines owned by or leased to a 3 34 municipal utility when devoted to public use and not 3 35 for pecuniary profit, except transmission lines of a 3 36 municipally owned electric utility held under joint 3 37 ownership and transmission lines of an electric power 3 38 facility financed under chapter 28F or 476A. 3 39 Sec. 8. Section 476.1A, Code 2001, is amended by 3 40 adding the following new subsection: 3 41 NEW SUBSECTION. 5A. Filing alternate energy 3 42 purchase program plans with the board, and offering 3 43 such programs to customers, pursuant to section 3 44 476.47. 3 45 Sec. 9. Section 476.1B, subsection 1, Code 2001, 3 46 is amended by adding the following new paragraphs: 3 47 NEW PARAGRAPH. m. An electric power agency as 3 48 defined in chapters 28F and 476A that includes as a 3 49 member a city or municipally owned utility that builds 3 50 transmission facilities after July 1, 2001, is subject 4 1 to applicable transmission reliability rules or 4 2 standards adopted by the board for those facilities. 4 3 n. Filing alternate energy purchase program plans 4 4 with the board, and offering such programs to 4 5 customers, pursuant to section 476.47. 4 6 Sec. 10. Section 476.6, Code 2001, is amended by 4 7 adding the following new subsection: 4 8 NEW SUBSECTION. 16B. ELECTRIC POWER GENERATING 4 9 FACILITY EMISSIONS. 4 10 a. It is the intent of the general assembly that 4 11 the state, through a collaborative effort involving 4 12 state agencies and affected generation owners, provide 4 13 for compatible statewide environmental and electric 4 14 energy policies with respect to regulated emissions 4 15 from rate-regulated electric power generating 4 16 facilities in the state that are fueled by coal. Each 4 17 rate-regulated public utility that is an owner of one 4 18 or more electric power generating facilities fueled by 4 19 coal and located in this state on July 1, 2001, shall 4 20 develop a multiyear plan and budget for managing 4 21 regulated emissions from its facilities in a cost- 4 22 effective manner. 4 23 (1) The initial multiyear plan and budget shall be 4 24 filed with the board by April 1, 2002. Updates to the 4 25 plan and budget shall be filed at least every twenty- 4 26 four months. 4 27 (2) Copies of the initial plan and budget, as well 4 28 as any subsequent updates, shall be served on the 4 29 environmental protection division of the department of 4 30 natural resources. 4 31 (3) The initial multiyear plan and budget and any 4 32 subsequent updates shall be considered in a contested 4 33 case proceeding pursuant to chapter 17A. The 4 34 environmental protection division of the department of 4 35 natural resources and the consumer advocate shall 4 36 participate as parties to the proceeding. 4 37 (4) The department of natural resources shall 4 38 state whether the plan or update meets applicable 4 39 state environmental requirements for regulated 4 40 emissions. If the plan does not meet these 4 41 requirements, the department shall recommend 4 42 amendments that outline actions necessary to bring the 4 43 plan or update into compliance with the environmental 4 44 requirements. 4 45 b. The board shall not approve a plan or update 4 46 that does not meet applicable state environmental 4 47 requirements and federal ambient air quality standards 4 48 for regulated emissions from electric power generating 4 49 facilities located in the state. 4 50 c. The board shall review the plan or update and 5 1 the associated budget, and shall approve the plan or 5 2 update and the associated budget if the plan or update 5 3 and the associated budget are reasonably expected to 5 4 achieve cost effective compliance with applicable 5 5 state environmental requirements and federal ambient 5 6 air quality standards. In reaching its decision, the 5 7 board shall consider whether the plan or update and 5 8 the associated budget reasonably balance costs, 5 9 environmental requirements, economic development 5 10 potential, and the reliability of the electric 5 11 generation and transmission system. 5 12 d. The board shall issue an order approving or 5 13 rejecting a plan, update, or budget within one hundred 5 14 eighty days after the public utility's filing is 5 15 deemed complete; however, upon good cause shown, the 5 16 board may extend the time for issuing the order as 5 17 follows: 5 18 (1) The board may grant an extension of thirty 5 19 days. 5 20 (2) The board may grant more than one extension, 5 21 but each extension must rely upon a separate showing 5 22 of good cause. 5 23 (3) A subsequent extension must not be granted any 5 24 earlier than five days prior to the expiration of the 5 25 original one-hundred-eighty-day period, or the current 5 26 extension. 5 27 e. The reasonable costs incurred by a rate- 5 28 regulated public utility in preparing and filing the 5 29 plan, update, or budget and in participating in the 5 30 proceedings before the board and the reasonable costs 5 31 associated with implementing the plan, update, or 5 32 budget shall be included in its regulated retail 5 33 rates. 5 34 f. It is the intent of the general assembly that 5 35 the board, in an environmental plan, update, or 5 36 associated budget filed under this section by a rate- 5 37 regulated public utility, may limit investments or 5 38 expenditures that are proposed to be undertaken prior 5 39 to the time that the environmental benefit to be 5 40 produced by the investment or expenditure would be 5 41 required by state or federal law. 5 42 g. The board shall report to the general assembly 5 43 by January 21, 2003, on the appropriateness and 5 44 desirability of requiring the municipal utilities and 5 45 the rural electric cooperatives to file multiyear 5 46 plans and budgets for managing regulated emissions 5 47 from their electric power generating facilities fueled 5 48 by coal and located in this state, similar to the 5 49 process required for rate-regulated public utilities 5 50 under this subsection. 6 1 Sec. 11. NEW SECTION. 476.47 ALTERNATE ENERGY 6 2 PURCHASE PROGRAMS. 6 3 1. Beginning January 1, 2004, an electric utility, 6 4 whether or not rate-regulated under this chapter, 6 5 shall offer an alternate energy purchase program to 6 6 customers, based on energy produced by alternate 6 7 energy production facilities in Iowa. 6 8 2. The board shall require electric utilities to 6 9 file plans for alternate energy purchase programs 6 10 offered pursuant to this section. 6 11 a. Rate-regulated electric utilities shall file 6 12 plans for alternate energy purchase programs that 6 13 allow customers to contribute voluntarily to the 6 14 development of alternate energy in Iowa, and shall 6 15 file tariffs as required by the board by rule. 6 16 b. Electric utilities that are not rate-regulated 6 17 shall offer alternate energy purchase programs at 6 18 rates determined by their governing authority, and 6 19 shall file tariffs with the board for informational 6 20 purposes only. 6 21 3. The electric utility shall notify consumers of 6 22 its alternate energy purchase program and any proposed 6 23 modifications to such program at least sixty days 6 24 prior to implementation of the program or any 6 25 modification. 6 26 4. For purposes of this section, an electric 6 27 utility may base its program on energy produced by 6 28 alternate energy production facilities located outside 6 29 of Iowa under any of the following circumstances: 6 30 a. The energy is purchased by the electric utility 6 31 pursuant to a contract in effect prior to July 1, 6 32 2001, and continues until the expiration of the 6 33 contract, including any options to renew that are 6 34 exercised by the electric utility. 6 35 b. The electric utility has a financial interest, 6 36 as of July 1, 2001, in the alternate energy production 6 37 facility that is located outside of Iowa, or in an 6 38 entity that has a financial interest in an alternate 6 39 energy production facility located outside of Iowa. 6 40 c. The energy is purchased by an electric utility 6 41 that is not rate-regulated and that is required to 6 42 purchase all of its electric power requirements from a 6 43 single supplier that is physically located outside of 6 44 Iowa. 6 45 5. This section shall not apply to non-rate- 6 46 regulated electric utilities physically located 6 47 outside of Iowa that serve Iowa customers. 6 48 6. Any consumer-owned utility may apply to the 6 49 board for a waiver under this section, and the board, 6 50 for good cause, may grant the waiver. 7 1 Sec. 12. Section 476.53, Code 2001, is amended by 7 2 striking the section and inserting in lieu thereof the 7 3 following: 7 4 476.53 ELECTRIC GENERATING AND TRANSMISSION 7 5 FACILITIES. 7 6 1. It is the intent of the general assembly to 7 7 attract the development of electric power generating 7 8 and transmission facilities within the state in 7 9 sufficient quantity to ensure reliable electric 7 10 service to Iowa consumers and provide economic 7 11 benefits to the state. 7 12 2. The general assembly's intent with regard to 7 13 the development of electric power generating and 7 14 transmission facilities, as provided in subsection 1, 7 15 shall be implemented in a manner that is cost- 7 16 effective and compatible with the environmental 7 17 policies of the state, as expressed in Title XI. 7 18 3. a. If a rate-regulated public utility files an 7 19 application pursuant to section 476A.3 to construct in 7 20 Iowa a baseload electric power generating facility 7 21 with a nameplate generating capacity equal to or 7 22 greater than three hundred megawatts or a combined- 7 23 cycle electric power generating facility, or an 7 24 alternate energy production facility as defined in 7 25 section 476.42, or if a rate-regulated public utility 7 26 leases or owns in Iowa, in whole or in part, a new 7 27 baseload electric power generating facility with a 7 28 nameplate generating capacity equal to or greater than 7 29 three hundred megawatts or a combined-cycle electric 7 30 power generating facility, or a new alternate energy 7 31 production facility as defined in section 476.42, the 7 32 board shall specify in advance, by order issued after 7 33 a contested case proceeding, the ratemaking principles 7 34 that will apply when the costs of the facility are 7 35 included in regulated electric rates. 7 36 b. In determining the applicable ratemaking 7 37 principles, the board shall not be limited to 7 38 traditional ratemaking principles or traditional cost 7 39 recovery mechanisms. 7 40 c. In determining the applicable ratemaking 7 41 principles, the board shall make the following 7 42 findings: 7 43 (1) The rate-regulated public utility has in 7 44 effect a board-approved energy efficiency plan as 7 45 required under section 476.6, subsection 19. 7 46 (2) The rate-regulated public utility has 7 47 demonstrated to the board that the public utility has 7 48 considered other sources for long-term electric supply 7 49 and that the facility or lease is reasonable when 7 50 compared to other feasible alternative sources of 8 1 supply. The rate-regulated public utility may satisfy 8 2 the requirements of this subparagraph through a 8 3 competitive bidding process, under rules adopted by 8 4 the board, that demonstrate the facility or lease is a 8 5 reasonable alternative to meet its electric supply 8 6 needs. 8 7 d. The applicable ratemaking principles shall be 8 8 determined in a contested case proceeding, which 8 9 proceeding may be combined with the proceeding for 8 10 issuance of a certificate conducted pursuant to 8 11 chapter 476A. 8 12 e. The order setting forth the applicable 8 13 ratemaking principles shall be issued prior to the 8 14 commencement of construction or lease of the facility. 8 15 f. Following issuance of the order, the rate- 8 16 regulated public utility shall have the option of 8 17 proceeding with construction or lease of the facility 8 18 in Iowa, or withdrawing its application for a 8 19 certificate under chapter 476A. 8 20 g. Notwithstanding any provision of this chapter 8 21 to the contrary, the ratemaking principles established 8 22 by the order issued pursuant to paragraph "e" shall be 8 23 binding with regard to the specific electric power 8 24 generating facility in any subsequent rate proceeding. 8 25 Sec. 13. Section 476A.4, Code 2001, is amended by 8 26 adding the following new subsection: 8 27 NEW SUBSECTION. 5. A proceeding for the issuance 8 28 of a certificate under section 476A.5 may be 8 29 consolidated with a contested case proceeding for 8 30 determination of applicable ratemaking principles 8 31 under section 476.53. 8 32 Sec. 14. Section 476A.6, Code 2001, is amended to 8 33 read as follows: 8 34 476A.6 DECISION – CRITERIA. 8 35 The board shall render a decision on the 8 36 application in an expeditious manner. A certificate 8 37 shall be issued to the applicant if the board finds 8 38 all of the following: 8 39 1. The services and operations resulting from the 8 40 construction of the facility arerequired by the8 41present or future public convenience, use and8 42necessityconsistent with legislative intent as 8 43 expressed in section 476.53 and the economic 8 44 development policy of the state as expressed in Title 8 45 I, subtitle 5, and will not be detrimental to the 8 46 provision of adequate and reliable electric service. 8 47 2. The applicant is willing toperform such8 48services andconstruct, maintain, and operate the 8 49 facility pursuant to the provisions of the certificate 8 50 and this chapter. 9 1 3. The construction, maintenance, and operation of 9 2 the facility willcause minimum adversebe consistent 9 3 with reasonable land use,and environmental, and9 4aesthetic impactpolicies andareconsonant with 9 5 reasonable utilization of air, land, and water 9 6 resources,for beneficial purposesconsidering 9 7 available technology and the economics of available 9 8 alternatives. 9 94. The applicant, if a public utility as defined9 10in section 476.1, has in effect a comprehensive energy9 11management program designed to reduce peak loads and9 12to increase efficiency of use of energy by all classes9 13of customers of the utility, and the facility in the9 14application is necessary notwithstanding the existence9 15of the comprehensive energy management program. As9 16used in this subsection, a "comprehensive energy9 17management program" includes at a minimum the9 18following:9 19a. Establishment of load management and9 20interruptible service programs, where cost effective.9 21b. Development of wheeling agreements and other9 22energy sharing agreements, where cost effective with9 23utilities that have available capacity.9 24c. Establishment of cost-effective energy9 25efficiency and renewable energy services and programs.9 26d. Compliance with board rules on energy9 27management procedures.9 285. The applicant, if a public utility as defined9 29in section 476.1, shall demonstrate to the board that9 30the utility has considered sources for long-term9 31electric supply from either purchase of electricity or9 32investment in facilities owned by other persons.9 336. The applicant, if a public utility as defined9 34in section 476.1, has considered all feasible9 35alternatives to the proposed facility including9 36nongeneration alternatives; has ranked those9 37alternatives by cost; has implemented the least-cost9 38alternatives first; and the facility in the9 39application is necessary notwithstanding the9 40implementation of these alternatives.9 41 Sec. 15. Section 476A.7, Code 2001, is amended by 9 42 adding the following new subsection: 9 43 NEW SUBSECTION. 3. Pursuant to the provisions of 9 44 section 476.53, a rate-regulated public utility shall 9 45 have the option of withdrawing its application for 9 46 issuance of a certificate at any time prior to the 9 47 issuance of the certificate, or after the certificate 9 48 has been issued. 9 49 Sec. 16. Section 476A.15, Code 2001, is amended to 9 50 read as follows: 10 1 476A.15 WAIVER. 10 2 The board, if it determines that the public 10 3 interest would not be adversely affected, may waive 10 4 any of the requirements of this chapterfor facilities10 5with a capacity of one hundred or fewer megawatts. 10 6 Sec. 17. NEW SECTION. 476A.20 DEFINITIONS. 10 7 For purposes of this subchapter, unless the context 10 8 otherwise requires: 10 9 1. "Electric power agency" means an entity as 10 10 defined in section 28F.2. 10 11 2. "Facility" means an electric power generating 10 12 plant, or transmission line or system, as defined in 10 13 section 476A.1. 10 14 3. "Public bond or obligation" means an obligation 10 15 as defined in section 76.14. 10 16 Sec. 18. NEW SECTION. 476A.21 ELECTRIC POWER 10 17 AGENCY – GENERAL AUTHORITY. 10 18 In addition to other powers conferred upon an 10 19 electric power agency by chapter 28F or other 10 20 applicable law, an electric power agency may enter 10 21 into and carry out joint agreements with other 10 22 participants for the acquisition of ownership of a 10 23 joint facility and for the planning, financing, 10 24 operation, and maintenance of the joint facility, as 10 25 provided in this subchapter. 10 26 Sec. 19. NEW SECTION. 476A.22 ELECTRIC POWER 10 27 AGENCY – AUTHORITY – CONFLICTING PROVISIONS. 10 28 1. In addition to any powers conferred upon an 10 29 electric power agency under chapter 28F or other 10 30 applicable law, an electric power agency may exercise 10 31 all other powers reasonably necessary or appropriate 10 32 for or incidental to the effectuation of the electric 10 33 power agency's authorized purposes, including without 10 34 limitation, the powers enumerated in chapters 6A and 10 35 6B for purposes of constructing or acquiring an 10 36 electric power facility. 10 37 2. An electric power agency, in connection with 10 38 its property and affairs, and in connection with 10 39 property within its control, may exercise any and all 10 40 powers that might be exercised by a natural person or 10 41 a private corporation in connection with similar 10 42 property and affairs. 10 43 3. The enumeration of specified powers and 10 44 functions of an electric power agency in this 10 45 subchapter is not a limitation of the powers of an 10 46 electric power agency, but the procedures prescribed 10 47 for exercising the powers and functions enumerated in 10 48 this subchapter control and govern in the event of any 10 49 conflict with any other provision of law. 10 50 4. The authority conferred pursuant to this 11 1 subchapter applies to electric power agencies, 11 2 notwithstanding any contrary provisions of section 11 3 28F.1. 11 4 Sec. 20. NEW SECTION. 476A.23 ISSUANCE OF PUBLIC 11 5 BONDS OR OBLIGATIONS – PURPOSES – LIMITATIONS. 11 6 1. An electric power agency may from time to time 11 7 issue its public bonds or obligations in such 11 8 principal amounts as the electric power agency deems 11 9 necessary to provide sufficient funds to carry out any 11 10 of its purposes and powers, including but not limited 11 11 to any of the following: 11 12 a. The acquisition or construction of any project 11 13 to be owned or leased by the electric power agency, or 11 14 the acquisition of any interest in such project or any 11 15 right to the capacity of such project, including the 11 16 acquisition, construction, or acquisition of any 11 17 interest in an electric power generating plant to be 11 18 constructed in this state, or the acquisition, 11 19 construction, or acquisition of any interest in a 11 20 transmission line or system. 11 21 b. The funding or refunding of the principal of, 11 22 or interest or redemption premiums on, any public 11 23 bonds or obligations issued by the electric power 11 24 agency whether or not the public bonds or obligations 11 25 or interest to be funded or refunded have become due. 11 26 c. The establishment or increase of reserves to 11 27 secure or to pay the public bonds or obligations or 11 28 interest on the public bonds or obligations. 11 29 d. The payment of all other costs or expenses of 11 30 the electric power agency incident to and necessary to 11 31 carry out its purposes and powers. 11 32 2. Notwithstanding anything in this subchapter or 11 33 chapter 28F to the contrary, a facility shall not be 11 34 financed with the proceeds of public bonds or 11 35 obligations, the interest on which is exempt from 11 36 federal income tax, unless the public issuer of such 11 37 public bonds or obligations covenants that the issuer 11 38 shall comply with the requirements or limitations 11 39 imposed by the Internal Revenue Code or other 11 40 applicable federal law to preserve the tax exemption 11 41 of interest payable on the bonds or obligations. 11 42 3. Notwithstanding anything in this subchapter or 11 43 chapter 28F to the contrary, an electric power 11 44 generating facility shall not be financed under this 11 45 subchapter unless all of the following conditions are 11 46 satisfied: 11 47 a. The portion of the electric power generating 11 48 facility financed by the electric power agency is not 11 49 designed to serve the electric power requirements of 11 50 retail customers of members that are municipal 12 1 electric utilities established in the state after 12 2 January 1, 2001. 12 3 b. The electric power agency annually files with 12 4 the board, in a manner to be determined by the board, 12 5 information regarding sales from the electric power 12 6 generating facility in sufficient detail to determine 12 7 compliance with these provisions. 12 8 The board shall report to the general assembly if 12 9 any of the provisions are being violated. 12 10 Sec. 21. NEW SECTION. 476A.24 PUBLIC BONDS OR 12 11 OBLIGATIONS AUTHORIZED BY RESOLUTION OF BOARD – 12 12 TERMS. 12 13 1. The board of directors of an electric power 12 14 agency, by resolution, may authorize the issuance of 12 15 public bonds or obligations of the electric power 12 16 agency. 12 17 2. The public bonds or obligations may be issued 12 18 in one or more series under the resolution or under a 12 19 trust indenture or other security agreement. 12 20 3. The resolution, trust indenture, or other 12 21 security agreement, with respect to such public bonds 12 22 or obligations, shall provide for all of the 12 23 following: 12 24 a. The date on the public bonds or obligations. 12 25 b. The time of maturity. 12 26 c. The rate of interest. 12 27 d. The denomination. 12 28 e. The form, either coupon or registered. 12 29 f. The conversion, registration, and exchange 12 30 privileges. 12 31 g. The rank or priority. 12 32 h. The manner of execution. 12 33 i. The medium of payment, including the place of 12 34 payment, either within or outside of the state. 12 35 j. The terms of redemption, either with or without 12 36 premium. 12 37 k. Such other terms and conditions as set forth by 12 38 the board in the resolution, trust indenture, or other 12 39 security agreement. 12 40 4. Public bonds or obligations authorized by the 12 41 board of directors shall not be subject to any 12 42 restriction under other law with respect to the 12 43 amount, maturity, interest rate, or other terms of 12 44 obligation of a public agency or private person. 12 45 5. Chapter 75 shall not apply to public bonds or 12 46 obligations authorized by the board of directors as 12 47 provided in this section. 12 48 Sec. 22. NEW SECTION. 476A.25 PUBLIC BONDS OR 12 49 OBLIGATIONS PAYABLE SOLELY FROM AGENCY REVENUES OR 12 50 FUNDS. 13 1 1. The principal of and interest on any public 13 2 bonds or obligations issued by an electric power 13 3 agency shall be payable solely from the revenues or 13 4 funds pledged or available for their payment as 13 5 authorized in this subchapter. 13 6 2. Each public bond or obligation shall contain 13 7 all of the following terms: 13 8 a. That the principal of or interest on such 13 9 public bonds or obligations is payable solely from 13 10 revenues or funds of the electric power agency. 13 11 b. That neither the state or a political 13 12 subdivision of the state other than the electric power 13 13 agency, nor a public agency that is a member of the 13 14 electric power agency is obligated to pay the 13 15 principal or interest on such public bonds or 13 16 obligations. 13 17 c. That neither the full faith and credit nor the 13 18 taxing power of the state, of any political 13 19 subdivision of the state, or of any such public agency 13 20 is pledged to the payment of the principal of or the 13 21 interest on the public bonds or obligations. 13 22 Sec. 23. NEW SECTION. 476A.26 PUBLIC BONDS OR 13 23 OBLIGATIONS – TYPES – SOURCES FOR PAYMENT – 13 24 SECURITY. 13 25 1. Except as otherwise expressly provided by this 13 26 subchapter or by the electric power agency, every 13 27 issue of public bonds or obligations of the electric 13 28 power agency shall be payable out of any revenues or 13 29 funds of the electric power agency, subject only to 13 30 any agreements with the holders of particular public 13 31 bonds or obligations pledging any particular revenues 13 32 or funds. 13 33 2. An electric power agency may issue types of 13 34 public bonds or obligations as it may determine, 13 35 including public bonds or obligations as to which the 13 36 principal and interest are payable exclusively from 13 37 the revenues from one or more projects, or from an 13 38 interest in such project or projects, or a right to 13 39 capacity of such project or projects, or from any 13 40 revenue-producing contract made by the electric power 13 41 agency with any person, or from its revenues 13 42 generally. 13 43 3. Any public bonds or obligations may be 13 44 additionally secured by a pledge of any grant, 13 45 subsidy, or contribution from any public agency or 13 46 other person, or a pledge of any income or revenues, 13 47 funds, or moneys of the electric power agency from any 13 48 other source. 13 49 Sec. 24. NEW SECTION. 476A.27 PUBLIC BONDS OR 13 50 OBLIGATIONS AND RATES FOR DEBT SERVICE NOT SUBJECT TO 14 1 STATE APPROVAL. 14 2 Public bonds or obligations of an electric power 14 3 agency may be issued under this subchapter, and rents, 14 4 rates, and charges may be established in the same 14 5 manner as provided in section 28F.5 and pledged for 14 6 the security of public bonds or obligations and 14 7 interest and redemption premiums on such public bonds 14 8 or obligations, without obtaining the consent of any 14 9 department, division, commission, board, bureau, or 14 10 agency of the state and without any other proceeding 14 11 or the happening of any other condition or occurrence, 14 12 except as specifically required by this subchapter. 14 13 Sec. 25. NEW SECTION. 476A.28 PUBLIC BONDS OR 14 14 OBLIGATIONS TO BE NEGOTIABLE. 14 15 All public bonds or obligations of an electric 14 16 power agency shall be negotiable within the meaning 14 17 and for all of the purposes of the uniform commercial 14 18 code, chapter 554, subject only to the registration 14 19 requirement of section 76.10. 14 20 Sec. 26. NEW SECTION. 476A.29 VALIDITY OF PUBLIC 14 21 BONDS OR OBLIGATIONS AT DELIVERY – TEMPORARY BONDS. 14 22 1. Any public bonds or obligations may be issued 14 23 and delivered, notwithstanding that one or more of the 14 24 officers executing them shall have ceased to hold 14 25 office at the time when the public bonds or 14 26 obligations are actually delivered. 14 27 2. Pending preparation of definitive bonds or 14 28 obligations, an electric power agency may issue 14 29 temporary bonds or obligations that shall be exchanged 14 30 for the definitive bonds or obligations upon their 14 31 issuance. 14 32 Sec. 27. NEW SECTION. 476A.30 PUBLIC OR PRIVATE 14 33 SALE OF BONDS AND NOTES. 14 34 Public bonds or obligations of an electric power 14 35 agency may be sold at public or private sale for a 14 36 price and in a manner determined by the electric power 14 37 agency. 14 38 Sec. 28. NEW SECTION. 476A.31 PUBLIC BONDS OR 14 39 OBLIGATIONS AS SUITABLE INVESTMENTS FOR GOVERNMENTAL 14 40 UNITS, FINANCIAL INSTITUTIONS, AND FIDUCIARIES. 14 41 The following persons may legally invest any debt 14 42 service funds, money, or other funds belonging to such 14 43 person or within such person's control in any public 14 44 bonds or obligations issued pursuant to this 14 45 subchapter: 14 46 1. A bank, trust company, savings association, 14 47 building and loan association, savings and loan 14 48 association, or investment company. 14 49 2. An insurance company, insurance association, or 14 50 any other person carrying on an insurance business. 15 1 3. An executor, administrator, conservator, 15 2 trustee, or other fiduciary. 15 3 4. Any other person authorized to invest in bonds 15 4 or obligations of the state. 15 5 Sec. 29. NEW SECTION. 476A.32 RESOLUTION, TRUST 15 6 INDENTURE, OR SECURITY AGREEMENT CONSTITUTES CONTRACT 15 7 – PROVISIONS. 15 8 The resolution, trust indenture, or other security 15 9 agreement under which any public bonds or obligations 15 10 are issued shall constitute a contract with the 15 11 holders of the public bonds or obligations, and may 15 12 contain provisions, among others, prescribing any of 15 13 the following terms: 15 14 1. The terms and provisions of the public bonds or 15 15 obligations. 15 16 2. The mortgage or pledge of and the grant of a 15 17 security interest in any real or personal property and 15 18 all or any part of the revenue from any project or any 15 19 revenue producing contract made by the electric power 15 20 agency with any person to secure the payment of public 15 21 bonds or obligations, subject to any agreements with 15 22 the holders of public bonds or obligations which might 15 23 then exist. 15 24 3. The custody, collection, securing, investment, 15 25 and payment of any revenues, assets, money, funds, or 15 26 property with respect to which the electric power 15 27 agency may have any rights or interest. 15 28 4. The rates or charges for electric energy sold 15 29 by, or services rendered by, the electric power 15 30 agency, the amount to be raised by the rates or 15 31 charges, and the use and disposition of any or all 15 32 revenue. 15 33 5. The creation of reserves or debt service funds 15 34 and the regulation and disposition of such reserves or 15 35 funds. 15 36 6. The purposes to which the proceeds from the 15 37 sale of any public bonds or obligations to be issued 15 38 may be applied, and the pledge of the proceeds to 15 39 secure the payment of the public bonds or obligations. 15 40 7. Limitations on the issuance of any additional 15 41 public bonds or obligations, the terms upon which 15 42 additional public bonds or obligations may be issued 15 43 and secured, and the refunding of outstanding public 15 44 bonds or obligations. 15 45 8. The rank or priority of any public bonds or 15 46 obligations with respect to any lien or security. 15 47 9. The creation of special funds or moneys to be 15 48 held for operating expenses, payment, or redemption of 15 49 public bonds or obligations, reserves or other 15 50 purposes, and the use and disposition of moneys held 16 1 in these funds. 16 2 10. The procedure by which the terms of any 16 3 contract with or for the benefit of the holders of 16 4 public bonds or obligations may be amended or 16 5 abrogated, the amount of public bonds or obligations 16 6 the holders of which must consent to such amendment or 16 7 abrogation, and the manner in which consent may be 16 8 given. 16 9 11. The definition of the acts or omissions to act 16 10 that constitute a default in the duties of the 16 11 electric power agency to holders of its public bonds 16 12 or obligations, and the rights and remedies of the 16 13 holders in the event of default including, if the 16 14 electric power agency so determines, the right to 16 15 accelerate the date of the maturation of the public 16 16 bonds or obligations or the right to appoint a 16 17 receiver or receivers of the property or revenues 16 18 subject to the lien of the resolution, trust 16 19 indenture, or other security agreement. 16 20 12. Any other or additional agreements with or for 16 21 the benefit of the holders of public bonds or 16 22 obligations or any covenants or restrictions necessary 16 23 or desirable to safeguard the interests of the 16 24 holders. 16 25 13. The custody of any of the electric power 16 26 agency's property or investments, the safekeeping of 16 27 such property or investments, the insurance to be 16 28 carried on such property or investments, and the use 16 29 and disposition of insurance proceeds. 16 30 14. The vesting in a trustee or trustees, within 16 31 or outside the state, of such property, rights, 16 32 powers, and duties as the electric power agency may 16 33 determine; or the limiting or abrogating of the rights 16 34 of the holders of any public bonds or obligations to 16 35 appoint a trustee, or the limiting of the rights, 16 36 powers, and duties of such trustee. 16 37 15. The appointment of and the establishment of 16 38 the duties and obligations of any paying agent or 16 39 other fiduciary within or outside the state. 16 40 Sec. 30. NEW SECTION. 476A.33 MORTGAGE OR TRUST 16 41 DEED TO SECURE BONDS. 16 42 For the security of public bonds or obligations 16 43 issued or to be issued by an electric power agency, 16 44 the electric power agency may mortgage or execute 16 45 deeds of trust of the whole or any part of its 16 46 property. 16 47 Sec. 31. NEW SECTION. 476A.34 NO PERSONAL 16 48 LIABILITY ON PUBLIC BONDS OR OBLIGATIONS. 16 49 An official, director, member of an electric power 16 50 agency, or any person executing public bonds or 17 1 obligations shall not be liable personally on the 17 2 public bonds or obligations or be subject to any 17 3 personal liability or accountability by reason of the 17 4 issuance of such public bonds or obligations. 17 5 Sec. 32. NEW SECTION. 476A.35 REPURCHASE OF 17 6 SECURITIES. 17 7 An electric power agency may purchase public bonds 17 8 or obligations out of any funds available for such 17 9 purchase, and hold, pledge, cancel, or resell the 17 10 public bonds or obligations, subject to and in 17 11 accordance with any agreements with the holders. 17 12 Sec. 33. NEW SECTION. 476A.36 PLEDGE OF REVENUE 17 13 AS SECURITY. 17 14 An electric power agency may pledge its rates, 17 15 rents, and other revenues, or any part of such rates, 17 16 rents, and revenues, as security for the repayment, 17 17 with interest and redemption premiums, if any, of the 17 18 moneys borrowed by the electric power agency or 17 19 advanced to the electric power agency for any of its 17 20 authorized purposes and as security for the payment of 17 21 moneys due and owed by the electric power agency under 17 22 any contract. 17 23 Sec. 34. Section 478.3, Code 2001, is amended by 17 24 adding the following new subsection: 17 25 NEW SUBSECTION. 3. For the purpose of this 17 26 section, the term "public" shall not be interpreted to 17 27 be limited to consumers located in this state. 17 28 Sec. 35. CODE EDITOR DIRECTIVE. The Code editor 17 29 shall change references to "this chapter" in sections 17 30 476A.1 through 476A.15 as necessary and appropriate to 17 31 reflect the addition of the new subchapter to chapter 17 32 476A as a result of this Act. 17 33 Sec. 36. EFFECTIVE DATE. This Act, being deemed 17 34 of immediate importance, takes effect upon enactment." 17 35 #2. Title page, line 2, by inserting after the 17 36 word "construction" the following: "or lease". 17 37 #3. Title page, line 3, by inserting after the 17 38 word "facility" the following: ", and for the 17 39 development of ratemaking principles to apply to 17 40 certain electric generating facilities". 17 41 #4. Title page, lines 3 and 4, by striking the 17 42 words "approval of power purchase contracts;". 17 43 #5. Title page, line 5, by inserting after the 17 44 word "policy;" the following: "providing for 17 45 alternate energy purchase programs; approval of plans 17 46 and budgets for regulating emissions from coal-fired 17 47 plants;". 17 48 #6. Title page, line 11, by inserting after the 17 49 word "transmission" the following: "; and providing 17 50 an effective date". 18 1 18 2 18 3 18 4 JoANN JOHNSON 18 5 HF 577.758 79 18 6 jj/cls
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