Text: HF00390                           Text: HF00392
Text: HF00300 - HF00399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 391

Partial Bill History

Bill Text

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 files The 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 a
  4  6 rate-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 13 by order issued after a contested case proceeding, the
  4 14 ratemaking principles that will apply when the costs of the
  4 15 facility 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, or lease,
  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 proceeding with
  5 14 construction or lease of the facility in Iowa or withdrawing
  5 15 according to either of the following:
  5 16    (1)  Withdrawing its application for a certificate under
  5 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

Return To Home index


© 2003 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Wed Aug 27 02:30:14 CDT 2003
URL: /DOCS/GA/80GA/Legislation/HF/00300/HF00391/030424.html
jhf