Text: HF00198 Text: HF00200 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 15.269 COGENERATION PILOT 1 2 PROGRAM. 1 3 1. DEFINITIONS. For purposes of this section, unless the 1 4 context otherwise requires: 1 5 a. "Cogeneration pilot project facility" means either a 1 6 utility-owned cogeneration pilot project facility or a 1 7 qualified cogeneration pilot project facility approved by the 1 8 department of economic development for participation in the 1 9 cogeneration pilot program established pursuant to subsection 1 10 2. 1 11 b. "Energy sales agreement" means a negotiated agreement 1 12 for the sale of the electric output from the cogeneration 1 13 pilot project, between either of the following: 1 14 (1) A qualified cogeneration pilot project facility and an 1 15 electric utility. 1 16 (2) A utility-owned cogeneration pilot project facility 1 17 and a commercial or industrial facility. 1 18 c. "Qualified cogeneration pilot project facility" means a 1 19 qualifying facility as defined in the federal Public Utility 1 20 Regulation Policies Act of 1978, 16 U.S.C. } 2601 et seq., and 1 21 related federal regulations. 1 22 d. "Utility-owned cogeneration pilot project facility" 1 23 means a cogeneration facility owned, in whole or in part, by a 1 24 rate-regulated electric utility that produces electric energy 1 25 and thermal energy for commercial purposes and is not a 1 26 qualifying facility as defined in the federal Public Utility 1 27 Regulatory Policies Act of 1978, 16 U.S.C. } 2601 et seq., and 1 28 related federal regulations. 1 29 2. PILOT PROGRAM ESTABLISHED. 1 30 a. It is the policy of this state to foster both the 1 31 development of cogeneration in Iowa and related economic 1 32 development associated with cogeneration projects. 1 33 It is the policy of this state that cogeneration projects 1 34 operate to the mutual benefit of businesses, industry, and 1 35 electric utilities in Iowa, financially and otherwise. 2 1 b. A cogeneration pilot program is established within the 2 2 department of economic development to obtain reliable energy 2 3 and economic benefits associated with successful development 2 4 of new, Iowa-based, electric power cogeneration strategies. 2 5 The department shall develop and administer the cogeneration 2 6 pilot program, according to the following: 2 7 (1) The department may choose up to three projects for 2 8 participation in the cogeneration pilot program: 2 9 (a) The projects shall be geographically diverse, and 2 10 represent different areas of Iowa, in order to test the 2 11 potential for cogeneration in different regions of the state. 2 12 (b) Each cogeneration pilot project facility must involve 2 13 two hundred megawatts or less of electricity, in combination 2 14 with one or more other cogeneration pilot project facilities. 2 15 (c) Each cogeneration pilot project facility must be 2 16 constructed in Iowa. 2 17 (d) Each project chosen for participation in the 2 18 cogeneration pilot program must also have the approval and 2 19 support of the department for economic development purposes. 2 20 (2) The department may adopt specific application 2 21 guidelines and deadlines by rule pursuant to chapter 17A, or 2 22 follow established departmental procedures and guidelines, if 2 23 applicable. 2 24 (3) The department shall assist in the implementation of 2 25 the cogeneration pilot program, and monitor the progress of 2 26 the participants. The department shall file its initial 2 27 report assessing the results of the pilot program with the 2 28 general assembly by December 1, 2004, and shall also file 2 29 yearly pilot program progress updates with the general 2 30 assembly through December 1, 2008. 2 31 3. FUTURE REPEAL. This section is repealed July 1, 2008. 2 32 However, any utilities board proceeding that involves a 2 33 qualified cogeneration pilot project facility or utility-owned 2 34 cogeneration pilot project facility that is pending on July 1, 2 35 2008, and that is being conducted pursuant to section 476.53 3 1 shall be completed notwithstanding the repeal of this section. 3 2 Sec. 2. Section 476.53, Code 2003, is amended by adding 3 3 the following new subsection: 3 4 NEW SUBSECTION. 2A. For purposes of this section, unless 3 5 the context otherwise requires, the terms "cogeneration pilot 3 6 project facility", "energy sales agreement", "qualified 3 7 cogeneration pilot project facility", and "utility-owned 3 8 cogeneration pilot project facility" mean the same as defined 3 9 in section 15.269. 3 10 Sec. 3. Section 476.53, subsections 3 and 4, Code 2003, 3 11 are amended to read as follows: 3 12 3. a.If a rate-regulated public utility filesThe board 3 13 shall specify in advance, by order issued after a contested 3 14 case proceeding, the ratemaking principles that will apply 3 15 when the costs of the electric power generating facility or 3 16 energy sales agreement are included in regulated electric 3 17 rates whenever a rate-regulated public utility does any of the 3 18 following: 3 19 (1) Files an application pursuant to section 476A.3 to 3 20 construct in Iowa a baseload electric power generating 3 21 facility with a nameplate generating capacity equal to or 3 22 greater than three hundred megawatts or a combined-cycle 3 23 electric power generating facility, or an alternate energy 3 24 production facility as defined in section 476.42, or if a3 25rate-regulated public utility leases. 3 26 (2) Leases or owns in Iowa, in whole or in part, a new 3 27 baseload electric power generating facility with a nameplate 3 28 generating capacity equal to or greater than three hundred 3 29 megawatts or a combined-cycle electric power generating 3 30 facility, or a new alternate energy production facility as 3 31 defined in section 476.42, the board shall specify in advance,3 32by order issued after a contested case proceeding, the3 33ratemaking principles that will apply when the costs of the3 34facility are included in regulated electric rates. 3 35 (3) Enters into an agreement for the purchase of the 4 1 electric power output of a qualified cogeneration pilot 4 2 project facility or construction of a utility-owned 4 3 cogeneration pilot project facility pursuant to section 4 4 15.269. 4 5 b. In determining the applicable ratemaking principles, 4 6 the board shall not be limited to traditional ratemaking 4 7 principles or traditional cost recovery mechanisms. 4 8 c. In determining the applicable ratemaking principles, 4 9 the board shall make the following findings: 4 10 (1) The rate-regulated public utility has in effect a 4 11 board-approved energy efficiency plan as required under 4 12 section 476.6, subsection 19. 4 13 (2) The rate-regulated public utility has demonstrated to 4 14 the board that the public utility has considered other sources 4 15 for long-term electric supply and that the facility,orlease, 4 16 or cogeneration pilot project facility is reasonable when 4 17 compared to other feasible alternative sources of supply. The 4 18 rate-regulated public utility may satisfy the requirements of 4 19 this subparagraph through a competitive bidding process, under 4 20 rules adopted by the board, that demonstrate the facility or 4 21 lease is a reasonable alternative to meet its electric supply 4 22 needs. 4 23 d. The applicable ratemaking principles shall be 4 24 determined in a contested case proceeding, which proceeding 4 25 may be combined with the proceeding for issuance of a 4 26 certificate conducted pursuant to chapter 476A. 4 27 e. The order setting forth the applicable ratemaking 4 28 principles shall be issued prior to the commencement of 4 29 construction or lease of the facility, or execution of an 4 30 energy sales agreement related to the cogeneration pilot 4 31 project facility. 4 32 f. Following issuance of the order, the rate-regulated 4 33 public utility shall have the option of proceeding with 4 34 construction or lease of the facility in Iowa,orwithdrawing 4 35 its application for a certificate under chapter 476A. 5 1 g. Notwithstanding any provision of this chapter to the 5 2 contrary, the ratemaking principles established by the order 5 3 issued pursuant to paragraph "e" shall be binding with regard 5 4 to the specific electric power generating facility or 5 5 cogeneration pilot project facility in any subsequent rate 5 6 proceeding. 5 7 4. The utilities board and the consumer advocate may 5 8 employ additional temporary staff, or may contract for 5 9 professional services with persons who are not state 5 10 employees, as the board and the consumer advocate deem 5 11 necessary to perform required functions as provided in this 5 12 section, including but not limited to review of power purchase 5 13 contracts, review of emission plans and budgets, and review of 5 14 ratemaking principles proposed for construction or lease of a 5 15 new generating facility or a cogeneration pilot project 5 16 facility. Beginning July 1, 2002, there is appropriated out 5 17 of any funds in the state treasury not otherwise appropriated, 5 18 such sums as may be necessary to enable the board and the 5 19 consumer advocate to hire additional staff and contract for 5 20 services under this section. The costs of the additional 5 21 staff and services shall be assessed to the utilities pursuant 5 22 to the procedure in section 476.10 and section 475A.6. 5 23 Sec. 4. Section 476.53, Code 2003, is amended by adding 5 24 the following new subsection: 5 25 NEW SUBSECTION. 5. DETERMINATION OF AVOIDED COST FOR 5 26 COGENERATION PROJECTS. 5 27 a. A qualified cogeneration pilot project facility may 5 28 file a petition with the board for a determination of the 5 29 avoided cost of an electric utility as provided in the federal 5 30 Public Utility Regulatory Policies Act of 1978 and related 5 31 federal regulations. 5 32 b. The board shall issue its determination of the electric 5 33 utility's avoided cost within one hundred twenty days after 5 34 the petition is filed. 5 35 c. The board, for good cause shown, may extend the 6 1 deadline for issuing the decision for an additional period not 6 2 to exceed one hundred twenty days. 6 3 d. The board shall not issue a decision under this 6 4 subsection without providing notice and an opportunity for 6 5 hearing. 6 6 e. The utilities board and the consumer advocate may 6 7 employ additional temporary staff, or may contract for 6 8 professional services with persons who are not state 6 9 employees, as the board and the consumer advocate deem 6 10 necessary to perform required functions as provided in this 6 11 subsection. There is appropriated out of any funds in the 6 12 state treasury not otherwise appropriated, such sums as may be 6 13 necessary to enable the board and the consumer advocate to 6 14 hire additional staff and contract for services under this 6 15 section. The costs of the additional staff and services shall 6 16 be assessed to the electric utility pursuant to the procedure 6 17 in sections 476.10 and 475A.6. 6 18 EXPLANATION 6 19 This bill relates to energy and economic development. 6 20 The bill enacts new Code section 15.269, relating to a 6 21 pilot program for new electric power cogeneration facilities 6 22 constructed in Iowa. A pilot program for cogeneration 6 23 projects is established in the department of economic 6 24 development. The department is authorized to choose up to 6 25 three cogeneration projects in Iowa which are geographically 6 26 diverse, are 200 megawatts or less in total size, and have the 6 27 general approval of the department. The department shall 6 28 produce an initial report for the general assembly by December 6 29 1, 2004, with yearly updates until 2008 when the pilot program 6 30 is repealed. The new section is repealed effective July 1, 6 31 2008. 6 32 The bill extends to cogeneration pilot program facilities 6 33 meeting certain federal standards for energy production the 6 34 ratemaking procedure currently available in Code section 6 35 476.53 for other new electric generating and transmission 7 1 facilities: baseload electric power generating facilities, 7 2 combined-cycle electric power generating facilities, and 7 3 alternate energy production facilities. As part of the 7 4 overall policy statement, the general assembly indicates a 7 5 state policy that cogeneration projects produce mutual 7 6 financial benefits for project participants. 7 7 LSB 1619YH 80 7 8 jj/sh/8.6
Text: HF00198 Text: HF00200 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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