Text: HF00390 Text: HF00392 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 391 1 2 1 3 AN ACT 1 4 ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT OF 1 5 COGENERATION FACILITIES, PROVIDING FOR THE DEVELOPMENT 1 6 OF RATEMAKING PRINCIPLES AND RATES FOR PILOT PROGRAM 1 7 FACILITIES, AND PROVIDING FOR A FUTURE REPEAL. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. NEW SECTION. 15.269 COGENERATION PILOT 1 12 PROGRAM. 1 13 1. DEFINITIONS. For purposes of this section, unless the 1 14 context otherwise requires: 1 15 a. "Cogeneration pilot project facility" means either a 1 16 utility-owned cogeneration pilot project facility or a 1 17 qualified cogeneration pilot project facility. Both a 1 18 utility-owned cogeneration pilot project facility and a 1 19 qualified cogeneration pilot project facility must be approved 1 20 by the department of economic development for participation in 1 21 the cogeneration pilot program established pursuant to 1 22 subsection 2. 1 23 b. "Energy sales agreement" means a negotiated agreement 1 24 for the sale of the electric output from the cogeneration 1 25 pilot project, between a qualified cogeneration pilot project 1 26 facility and an electric utility. 1 27 c. "Qualified cogeneration pilot project facility" means a 1 28 qualifying facility as defined in the federal Public Utility 1 29 Regulation Policies Act of 1978, 16 U.S.C. } 2601 et seq., and 1 30 related federal regulations. 1 31 d. "Utility-owned cogeneration pilot project facility" 1 32 means a cogeneration facility owned, in whole or in part, by a 1 33 rate-regulated electric utility that produces electric energy 1 34 and thermal energy for commercial purposes and is not a 1 35 qualifying facility as defined in the federal Public Utility 2 1 Regulatory Policies Act of 1978, 16 U.S.C. } 2601 et seq., and 2 2 related federal regulations. 2 3 2. PILOT PROGRAM ESTABLISHED. 2 4 a. It is the policy of this state to foster both the 2 5 development of cogeneration in Iowa and related economic 2 6 development associated with cogeneration projects. 2 7 It is the policy of this state that cogeneration projects 2 8 operate to the mutual benefit of businesses, industry, and 2 9 electric utilities in Iowa, financially and otherwise. 2 10 b. A cogeneration pilot program is established within the 2 11 department of economic development to obtain reliable energy 2 12 and economic benefits associated with successful development 2 13 of new, Iowa-based, electric power cogeneration strategies. 2 14 The department shall develop and administer the cogeneration 2 15 pilot program, according to the following: 2 16 (1) The department may choose up to two projects for 2 17 participation in the cogeneration pilot program: 2 18 (a) Each cogeneration pilot project facility must involve 2 19 two hundred megawatts or less of electricity, in combination 2 20 with one or more other cogeneration project facilities. 2 21 (b) Each cogeneration pilot project facility must be 2 22 constructed in Iowa. 2 23 (c) Each project chosen for participation in the 2 24 cogeneration pilot program must also have the approval and 2 25 support of the department for economic development purposes. 2 26 (2) The department may adopt specific application 2 27 guidelines and deadlines by rule pursuant to chapter 17A, or 2 28 follow established departmental procedures and guidelines, if 2 29 applicable. The guidelines, rules, and procedures shall not 2 30 require participation in a cogeneration pilot project or 2 31 program by any rate-regulated public utility providing retail 2 32 electric service to more than five hundred twenty thousand 2 33 customers in the state as of January 1, 2003, but any such 2 34 utility shall have the option to participate. 2 35 (3) The department shall assist in the implementation of 3 1 the cogeneration pilot program, and monitor the progress of 3 2 the participants. The department shall file its initial 3 3 report assessing the results of the pilot program with the 3 4 general assembly by December 1, 2004, and shall also file 3 5 yearly pilot program progress updates with the general 3 6 assembly through December 1, 2007. 3 7 c. The selection of a cogeneration project under this 3 8 program does not authorize an electric utility to furnish or 3 9 offer to furnish electric services to the public outside its 3 10 assigned area of service established under sections 476.22 3 11 through 476.26. 3 12 3. FUTURE REPEAL. This section is repealed July 1, 2007. 3 13 However, any utilities board proceeding that involves a 3 14 cogeneration pilot project facility that is pending on July 1, 3 15 2007, and that is being conducted pursuant to section 476.53 3 16 shall be completed notwithstanding the repeal of this section. 3 17 Sec. 2. Section 476.53, Code 2003, is amended by adding 3 18 the following new subsection: 3 19 NEW SUBSECTION. 2A. For purposes of this section, unless 3 20 the context otherwise requires, the terms "cogeneration pilot 3 21 project facility", "energy sales agreement", "qualified 3 22 cogeneration pilot project facility", and "utility-owned 3 23 cogeneration pilot project facility" mean the same as defined 3 24 in section 15.269. 3 25 Sec. 3. Section 476.53, subsections 3 and 4, Code 2003, 3 26 are amended to read as follows: 3 27 3. a.If a rate-regulated public utility filesThe board 3 28 shall specify in advance, by order issued after a contested 3 29 case proceeding, the ratemaking principles that will apply 3 30 when the costs of the electric power generating facility, 3 31 alternate energy production facility, cogeneration pilot 3 32 project facility, or energy sales agreement are included in 3 33 regulated electric rates whenever a rate-regulated public 3 34 utility does any of the following: 3 35 (1) Files an application pursuant to section 476A.3 to 4 1 construct in Iowa a baseload electric power generating 4 2 facility with a nameplate generating capacity equal to or 4 3 greater than three hundred megawatts or a combined-cycle 4 4 electric power generating facility, or an alternate energy 4 5 production facility as defined in section 476.42, or if a4 6rate-regulated public utility leases. 4 7 (2) Leases or owns in Iowa, in whole or in part, a new 4 8 baseload electric power generating facility with a nameplate 4 9 generating capacity equal to or greater than three hundred 4 10 megawatts or a combined-cycle electric power generating 4 11 facility, or a new alternate energy production facility as 4 12 defined in section 476.42, the board shall specify in advance,4 13by order issued after a contested case proceeding, the4 14ratemaking principles that will apply when the costs of the4 15facility are included in regulated electric rates. 4 16 (3) Enters into an agreement for the purchase of the 4 17 electric power output of a qualified cogeneration pilot 4 18 project facility or constructs a utility-owned cogeneration 4 19 pilot project facility pursuant to section 15.269. 4 20 b. In determining the applicable ratemaking principles, 4 21 the board shall not be limited to traditional ratemaking 4 22 principles or traditional cost recovery mechanisms. 4 23 c. In determining the applicable ratemaking principles, 4 24 the board shall make the following findings: 4 25 (1) The rate-regulated public utility has in effect a 4 26 board-approved energy efficiency plan as required under 4 27 section 476.6, subsection 19. 4 28 (2) The rate-regulated public utility has demonstrated to 4 29 the board that the public utility has considered other sources 4 30 for long-term electric supply and that the facility,orlease, 4 31 or cogeneration pilot project facility is reasonable when 4 32 compared to other feasible alternative sources of supply. The 4 33 rate-regulated public utility may satisfy the requirements of 4 34 this subparagraph through a competitive bidding process, under 4 35 rules adopted by the board, that demonstrate the facility, 5 1 energy sales agreement, or lease is a reasonable alternative 5 2 to meet its electric supply needs. 5 3 d. The applicable ratemaking principles shall be 5 4 determined in a contested case proceeding, which proceeding 5 5 may be combined with the proceeding for issuance of a 5 6 certificate conducted pursuant to chapter 476A. 5 7 e. The order setting forth the applicable ratemaking 5 8 principles shall be issued prior to the commencement of 5 9 construction or lease of the facility, or execution of an 5 10 energy sales agreement related to the cogeneration pilot 5 11 project facility. 5 12 f. Following issuance of the order, the rate-regulated 5 13 public utility shall have the option of proceedingwith5 14construction or lease of the facility in Iowa or withdrawing5 15 according to either of the following: 5 16 (1) Withdrawing its application for a certificateunder5 17 pursuant to chapter 476A. 5 18 (2) Proceeding with the construction or lease of the 5 19 facility or implementation of an energy sales agreement 5 20 related to a cogeneration pilot project facility. 5 21 g. Notwithstanding any provision of this chapter to the 5 22 contrary, the ratemaking principles established by the order 5 23 issued pursuant to paragraph "e" shall be binding with regard 5 24 to the specific electric power generating facility or 5 25 cogeneration pilot project facility in any subsequent rate 5 26 proceeding. 5 27 4. The utilities board and the consumer advocate may 5 28 employ additional temporary staff, or may contract for 5 29 professional services with persons who are not state 5 30 employees, as the board and the consumer advocate deem 5 31 necessary to perform required functions as provided in this 5 32 section, including but not limited to review of power purchase 5 33 contracts, review of emission plans and budgets, and review of 5 34 ratemaking principles proposed for construction or lease of a 5 35 new generating facility or a cogeneration pilot project 6 1 facility. Beginning July 1, 2002, there is appropriated out 6 2 of any funds in the state treasury not otherwise appropriated, 6 3 such sums as may be necessary to enable the board and the 6 4 consumer advocate to hire additional staff and contract for 6 5 services under this section. The costs of the additional 6 6 staff and services shall be assessed to the utilities pursuant 6 7 to the procedure in section 476.10 and section 475A.6. 6 8 Sec. 4. Section 476.53, Code 2003, is amended by adding 6 9 the following new subsection: 6 10 NEW SUBSECTION. 5. DETERMINATION OF AVOIDED COST FOR 6 11 COGENERATION PROJECTS. 6 12 a. A qualified cogeneration pilot project facility may 6 13 file a petition with the board for a determination of the 6 14 avoided cost of an electric utility as provided in the federal 6 15 Public Utility Regulatory Policies Act of 1978 and related 6 16 federal regulations, if such a determination has not been made 6 17 within the last twenty-four months or if there is reason to 6 18 believe the avoided cost has changed. 6 19 b. The board shall issue its determination of the electric 6 20 utility's avoided cost within one hundred twenty days after 6 21 the petition is filed. 6 22 c. The board, for good cause shown, may extend the 6 23 deadline for issuing the decision for an additional period not 6 24 to exceed one hundred twenty days. 6 25 d. The board shall not issue a decision under this 6 26 subsection without providing notice and an opportunity for 6 27 hearing. 6 28 e. The utilities board and the consumer advocate may 6 29 employ additional temporary staff, or may contract for 6 30 professional services with persons who are not state 6 31 employees, as the board and the consumer advocate deem 6 32 necessary to perform required functions as provided in this 6 33 subsection. There is appropriated out of any funds in the 6 34 state treasury not otherwise appropriated, such sums as may be 6 35 necessary to enable the board and the consumer advocate to 7 1 hire additional staff and contract for services under this 7 2 section. The costs of the additional staff and services shall 7 3 be assessed to the electric utility pursuant to the procedure 7 4 in sections 476.10 and 475A.6. 7 5 7 6 7 7 7 8 CHRISTOPHER C. RANTS 7 9 Speaker of the House 7 10 7 11 7 12 7 13 MARY E. KRAMER 7 14 President of the Senate 7 15 7 16 I hereby certify that this bill originated in the House and 7 17 is known as House File 391, Eightieth General Assembly. 7 18 7 19 7 20 7 21 MARGARET THOMSON 7 22 Chief Clerk of the House 7 23 Approved , 2003 7 24 7 25 7 26 7 27 THOMAS J. VILSACK 7 28 Governor
Text: HF00390 Text: HF00392 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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