Text: HSB00118 Text: HSB00120 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.42, Code 2003, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 3A. "Small distributed generation" means 1 4 a qualifying alternate energy production facility located at 1 5 or near a user's point of delivery with a capacity of three 1 6 megawatts or less, and connected at a voltage of less than 1 7 sixty kilovolts. To be a qualifying alternate energy 1 8 production facility, users of distributed generation 1 9 facilities must maintain ownership of the alternate energy 1 10 production facility through majority voting membership. The 1 11 alternate energy production facility may be connected in 1 12 parallel operation to the electric utility system. 1 13 Sec. 2. Section 476.44, subsection 2, Code 2003, is 1 14 amended to read as follows: 1 15 2. a. An electric utility subject to this division, 1 16 except a utilitywhichthat elects rate regulation pursuant to 1 17 section 476.1A, shallnotbe required to purchase, at any one1 18time, more than its share of one hundred five megawatts of1 19poweror generate at least the following percentages of its 1 20 total annual Iowa retail electric sales fromalternative1 21 alternate energy production facilities or small hydro 1 22 facilities at the rates established pursuant to section 1 23 476.43:. The board shall allocate the one hundred five1 24megawatts based upon each utility's percentage of the total1 25Iowa retail peak demand, for the year beginning January 1,1 261990, of all utilities subject to this section.1 27 (1) By December 31, 2004, four percent. 1 28 (2) By December 31, 2005, five percent. 1 29 (3) By December 31, 2006, six percent. 1 30 (4) By December 31, 2007, seven percent. 1 31 (5) By December 31, 2008, eight percent. 1 32 (6) By December 31, 2009, nine percent. 1 33 (7) By December 31, 2010, and annually thereafter, at 1 34 least ten percent. 1 35 b. A maximum of two percent of each utility's total annual 2 1 retail electric sales may be derived from alternate energy 2 2 production facilities or small hydro facilities placed in 2 3 service before January 1, 2004. 2 4 c. At least twenty percent of an electric utility's yearly 2 5 percentage pursuant to the schedule in paragraph "a" shall be 2 6 derived from small distributed generation facilities. 2 7If a utility undergoes reorganization as defined in section2 8476.76, the board shall combine the allocated purchases of2 9power for each utility involved in the reorganization.2 10Notwithstanding the one hundred five megawatt maximum, the2 11board may increase the amount of power that a utility is2 12required to purchase at the rates established pursuant to2 13section 476.43 if the board finds that a utility, including a2 14reorganized utility, exceeds its 1990 Iowa retail peak demand2 15by twenty percent and the additional power the utility is2 16required to purchase will encourage the development of2 17alternate energy production facilities and small hydro2 18facilities. The increase shall not exceed the utility's2 19increase in peak demand multiplied by the ratio of the2 20utility's share of the one hundred five megawatt maximum to2 21its 1990 Iowa retail peak demand.2 22 Sec. 3. Section 476.44, Code 2003, is amended by adding 2 23 the following new subsection: 2 24 NEW SUBSECTION. 3. The board shall establish and 2 25 administer a system for trading of alternate energy credits 2 26 through which a utility shall satisfy its obligation pursuant 2 27 to subsection 2. 2 28 a. Alternate energy credits shall be issued by the board 2 29 to alternate energy production facilities and small hydro 2 30 facilities, and shall represent the production of one 2 31 kilowatt-hour of electrical generation by such facility. 2 32 b. Alternate energy credits may be sold or exchanged by 2 33 the facility to which the credits are issued, or by any other 2 34 person who acquires the credits. 2 35 c. The board shall adopt rules to administer and enforce 3 1 this subsection that, at a minimum, shall include the 3 2 following requirements: 3 3 (1) An alternate energy credit may be counted only once 3 4 toward compliance with subsection 2. 3 5 (2) The energy generation represented by an alternate 3 6 energy credit that is used to satisfy subsection 2 may not 3 7 additionally be used to satisfy obligations to consumers to 3 8 sell energy produced by alternate energy production 3 9 facilities. 3 10 (3) Each alternate energy credit that is not used in the 3 11 year of its creation may be banked, and remains valid for the 3 12 next two compliance years. 3 13 (4) A utility otherwise unable to satisfy its obligation 3 14 under subsection 2 shall purchase credits directly from the 3 15 board at the cost of three and one-half cents per kilowatt- 3 16 hour. The cost shall be adjusted annually for inflation, 3 17 according to application of the percentage change of the 3 18 consumer price index for all urban consumers, United States 3 19 city average, as published in the federal register by the 3 20 federal department of labor, bureau of labor statistics. The 3 21 board may by rule adopt a different adjustment for inflation 3 22 if it is found to be more appropriate for the pricing of 3 23 energy credits. 3 24 Sec. 4. EFFECTIVE DATE. This Act, being deemed of 3 25 immediate importance, takes effect upon enactment. 3 26 EXPLANATION 3 27 This bill provides for a schedule in Code chapter 476 for 3 28 purchase or generation requirements by certain electric 3 29 utilities of energy from alternate energy production 3 30 facilities, more commonly known as a renewable portfolio 3 31 standard, and related requirements, including a system of 3 32 energy credit trading. 3 33 The bill creates a schedule in Code section 476.44 that 3 34 increases the minimum annual percentage of renewable energy 3 35 that electric utilities, except for those utilities that have 4 1 elected rate regulation pursuant to Code section 476.1A, are 4 2 obligated to purchase from alternate energy production 4 3 facilities. As defined in Code section 476.42, an alternate 4 4 energy production facility means a facility that produces 4 5 energy from solar, wind turbine, waste management, resource 4 6 recovery, refuse-derived fuel, agricultural crops or residues, 4 7 or woodburning sources; the land, building, or improvements at 4 8 the project site; and the transmission or distribution 4 9 facilities necessary to conduct the energy produced. Current 4 10 Code language requires electric utilities to purchase 105 4 11 megawatts, which is approximately 2 percent of Iowa retail 4 12 load. The bill would shift the requirement to 4 percent of 4 13 Iowa retail sales by December 31, 2004, and then increase that 4 14 percentage annually by 1 percent per year, culminating in a 10 4 15 percent annual purchase or generation requirement by December 4 16 31, 2010. 4 17 The bill adds provisions to specify that only 2 percent of 4 18 each utility's total annual retail sales may be derived from 4 19 alternate energy production facilities placed into service 4 20 prior to January 1, 2004, and that at least 20 percent of a 4 21 utility's yearly purchase or generation requirement must be 4 22 derived from distributed generation sources. A new definition 4 23 is added for "small distributed generation" in Code section 4 24 476.42 that specifies size, use, and business organization 4 25 requirements. 4 26 The board is directed to establish an energy credit trading 4 27 system in conjunction with these changes. Credits are issued 4 28 to alternate energy producers for each kilowatt-hour of 4 29 electricity produced. The credits may then be sold or 4 30 exchanged by those producers. Buyers may utilize the credits 4 31 to fulfill purchase or generation obligations under the new 4 32 provisions of Code section 476.44, or may sell or exchange the 4 33 credits with another buyer. An energy credit may only be 4 34 redeemed once toward fulfillment of the statutory purchase or 4 35 generation requirement, however. Energy credits may be banked 5 1 for up to two compliance years. A utility unable to satisfy 5 2 its purchase or generation requirement will be required to 5 3 purchase credits directly from the board. 5 4 The bill takes effect upon enactment. 5 5 LSB 1196HC 80 5 6 jj/sh/8
Text: HSB00118 Text: HSB00120 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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