Text: SF02270 Text: SF02272 Text: SF02200 - SF02299 Text: SF 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 subsections:
1 3 NEW SUBSECTION. 0A. "Aggregate of small producers" means
1 4 two or more small distributed generation facilities working
1 5 collectively by agreement as a single producer.
1 6 NEW SUBSECTION. 1A. "Board" means the Iowa utilities
1 7 board of the department of commerce.
1 8 NEW SUBSECTION. 3A. "Small distributed generation
1 9 facility" means an alternate energy production facility
1 10 located at or near an end-user site with a capacity of three
1 11 megawatts or less, in which nonutility end users maintain
1 12 majority ownership, and which may be connected in parallel
1 13 operation to the electric utility system.
1 14 Sec. 2. NEW SECTION. 476.48 ALTERNATE ENERGY INCENTIVE
1 15 PROGRAM.
1 16 1. PROGRAM REQUIREMENTS. An alternate energy incentive
1 17 program is established in the utilities division of the
1 18 department of commerce in consultation with the department of
1 19 natural resources. The purpose of the program is to encourage
1 20 investment in alternate energy production facilities located
1 21 in this state for distribution of electricity to users
1 22 throughout the state. An electric utility that generates or
1 23 sells electricity in this state may participate in the
1 24 alternate energy incentive program if all of the following
1 25 criteria are met:
1 26 a. The electric utility must purchase or generate by the
1 27 following dates at least the following percentages of its
1 28 total annual Iowa retail electric sales from alternate energy
1 29 production facilities located in this state:
1 30 (1) By December 31, 2006, ten percent.
1 31 (2) By December 31, 2008, fifteen percent.
1 32 (3) By December 31, 2010, and annually thereafter, twenty
1 33 percent.
1 34 b. As part of the purchase or generation requirement in
1 35 paragraph "a", no more than a maximum of two percent of each
2 1 electric utility's total annual Iowa retail electric sales can
2 2 be purchased from alternate energy production facilities or
2 3 small hydro facilities placed in service before January 1,
2 4 2005.
2 5 c. At least twenty percent of an electric utility's annual
2 6 purchase or generation requirement in paragraph "a" must be
2 7 purchased from small distributed generation facilities or an
2 8 aggregate of small producers.
2 9 d. A contract to purchase electricity from small
2 10 distributed generation facilities or an aggregate of small
2 11 producers must include a purchase rate of at least three and
2 12 one-half cents per kilowatt hour.
2 13 2. INCENTIVES. The incentives for which an electric
2 14 utility may qualify shall be determined and distributed
2 15 reasonably by rule as adopted by the utilities board.
2 16 3. MEDIATION OF PURCHASE DISPUTE. A small distributed
2 17 generation facility or an aggregate of small producers
2 18 claiming to be aggrieved by an electric utility's refusal to
2 19 purchase alternate energy from the facility or aggregate may
2 20 file with the board a written complaint which shall state the
2 21 name and address of the electric utility alleged to have
2 22 refused to purchase the alternate energy, shall set forth the
2 23 facts of the attempted sale, and shall contain such other
2 24 information as may be required by the board.
2 25 a. Upon receipt by the board of a complaint, the board
2 26 shall bring the parties together for mediation of the purchase
2 27 dispute, but the board shall not compel the parties to agree.
2 28 The chairperson of the board shall appoint one board member to
2 29 act as mediator. The mediation process shall be conducted
2 30 according to chapter 679C and rules adopted by the board after
2 31 consultation with the department of natural resources.
2 32 b. Mediation participation under this subsection shall
2 33 include attendance at a mediation session with the mediator
2 34 and the parties to the dispute, listening to the mediator's
2 35 explanation of the mediation process, presentation of one
3 1 party's view of the dispute, and listening to the responses of
3 2 the parties. Participation in mediation does not require that
3 3 the parties reach an agreement or contract to purchase
3 4 alternate energy. Parties to the mediation shall have the
3 5 right to advice and presence of counsel at all times.
3 6 c. Failure to negotiate in good faith or to participate in
3 7 mediation when requested by the board may result in expulsion
3 8 from the alternate energy incentive program.
3 9 4. The board shall adopt rules to administer this section.
3 10 Sec. 3. EFFECTIVE DATE. This Act takes effect July 1,
3 11 2005.
3 12 EXPLANATION
3 13 This bill establishes an alternate energy incentive program
3 14 in the utilities division of the department of commerce.
3 15 Electric utilities that generate or sell electricity in this
3 16 state may participate in the program if the utility purchases
3 17 or generates a minimum percentage amount of its Iowa retail
3 18 electric sales, increasing in specific percentages in future
3 19 years, from alternate energy production facilities. The
3 20 utility must also purchase no more than 2 percent of its Iowa
3 21 retail electric sales from alternate energy production
3 22 facilities existing prior to January 1, 2005. To participate
3 23 in the program, the utility must also purchase a minimum
3 24 amount of the utility's yearly required percentage of
3 25 alternate energy from small distributed generation facilities
3 26 or aggregates thereof, as defined in the bill, and the
3 27 contract to purchase from small distributed generation
3 28 facilities must be at a rate of at least 3 and one-half cents
3 29 per kilowatt hour.
3 30 The incentives for which an electric utility would qualify
3 31 under the program shall be established by rule by the
3 32 utilities board.
3 33 If a small distributed generation facility is unable to
3 34 successfully negotiate a contract with an electric utility,
3 35 the facility may file a complaint with the utilities board.
4 1 The chairperson of the utilities board shall appoint one
4 2 member of the board to act as mediator and the mediation shall
4 3 be conducted pursuant to the general mediation requirements of
4 4 Code chapter 679C. The bill describes what constitutes
4 5 participating in mediation and permits the utilities board to
4 6 expel from the incentive program any electric utility that
4 7 fails to negotiate in good faith or to participate in
4 8 mediation.
4 9 LSB 6403SV 80
4 10 kk/cf/24.1
Text: SF02270 Text: SF02272 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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