House File 2256 - Introduced
HOUSE FILE
BY BERRY and KRESSIG
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act specifying conditions for the issuance of a certificate of
2 public convenience, use, and necessity by the Iowa utilities
3 board to a coal=fired merchant power plant.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6374YH 82
6 rn/rj/14
PAG LIN
1 1 Section 1. NEW SECTION. 476A.16 COAL=FIRED MERCHANT
1 2 POWER PLANTS == ALLOCATION OF REVENUE.
1 3 1. For purposes of this section, "coal=fired merchant
1 4 power plant" means a power plant located in this state that
1 5 burns coal and is not owned or operated by a public utility,
1 6 municipally owned utility, municipal power agency, or electric
1 7 cooperative corporation or association and which is not
1 8 subject to rate regulation pursuant to chapter 476.
1 9 2. As a condition for issuance of a certificate by the
1 10 board pursuant to this chapter, the board shall require an
1 11 owner or operator of a coal=fired merchant power plant to
1 12 allocate revenue derived from the operation of the facility as
1 13 follows:
1 14 a. Provide one=tenth of one percent of gross revenue for
1 15 the support of the Iowa energy center established in section
1 16 266.39C and the university of Iowa center for global and
1 17 regional environmental research established by the state board
1 18 of regents.
1 19 b. Provide two percent of gross revenue for an energy
1 20 management improvement grant program to be administered by the
1 21 center for energy and environmental education at the
1 22 university of northern Iowa.
1 23 3. As a condition for issuance of a certificate by the
1 24 board pursuant to this chapter, the owner or operator of a
1 25 coal=fired merchant power plant shall develop a multiyear plan
1 26 and budget for managing regulated emissions from the facility
1 27 in a cost=effective manner, as follows:
1 28 a. The initial multiyear plan and budget shall be filed
1 29 with the board when an application for a certificate pursuant
1 30 to section 476A.3 is submitted by the owner or operator, with
1 31 an additional copy provided to the department of natural
1 32 resources. The plan shall, at a minimum, meet the electric
1 33 power generating facility emissions criteria and standards
1 34 applicable to plans approved by the board for rate=regulated
1 35 utilities pursuant to section 476.6, subsection 22. If the
2 1 board determines the plan to be deficient or inadequate in any
2 2 way, a certificate shall not be issued.
2 3 b. Updates to the plan and budget, incorporating the most
2 4 up=to=date technological developments relating to emissions
2 5 regulation, shall be filed with the board at least every
2 6 twenty=four months, with a copy provided to the department of
2 7 natural resources.
2 8 c. Updates shall be considered in a contested case
2 9 proceeding pursuant to chapter 17A. The department of natural
2 10 resources and the consumer advocate shall participate as
2 11 parties to the proceeding.
2 12 d. The department of natural resources shall state whether
2 13 the plan or update meets applicable state environmental
2 14 requirements for regulated emissions. If the plan does not
2 15 meet these requirements, the department shall recommend
2 16 amendments that outline actions necessary to bring the plan or
2 17 update into compliance with the environmental requirements.
2 18 e. The board shall not approve a plan or update that does
2 19 not meet applicable state environmental requirements and
2 20 federal ambient air quality standards for regulated emissions
2 21 from electric power generating facilities located in this
2 22 state.
2 23 f. The board shall issue an order approving or rejecting a
2 24 plan, update, or budget within one hundred eighty days after
2 25 the utility's filing is deemed complete; however, upon good
2 26 cause shown, the board may extend the time for issuing the
2 27 order as follows:
2 28 (1) The board may grant an extension of thirty days.
2 29 (2) The board may grant more than one extension, but each
2 30 extension must rely upon a separate showing of good cause.
2 31 (3) A subsequent extension must not be granted any earlier
2 32 than five days prior to the expiration of the original
2 33 one=hundred=eighty=day period, or the current extension.
2 34 g. If the plan is rejected by the board, the board shall
2 35 issue an order to the owner or operator of the coal=fired
3 1 merchant power plant to cease generation of power within
3 2 thirty days.
3 3 4. The board, after consultation with the department of
3 4 natural resources, may waive all or part of the requirements
3 5 of subsection 2 upon finding that the coal=fired merchant
3 6 power plant has achieved other methods to offset its
3 7 production of greenhouse gases and other pollutants.
3 8 5. The board shall adopt rules pursuant to chapter 17A
3 9 prescribing the regulatory standards and implementation
3 10 procedures relating to application of the requirements of this
3 11 section.
3 12 EXPLANATION
3 13 This bill specifies conditions which must be satisfied by
3 14 the owner or operator of a coal=fired merchant power plant in
3 15 order to be issued a certificate of public convenience, use,
3 16 and necessity by the Iowa utilities board.
3 17 The bill defines a coal=fired merchant power plant to refer
3 18 to a plant located in Iowa that burns coal and is not owned or
3 19 operated by a public utility, municipally owned utility,
3 20 municipal power agency, or electric cooperative corporation or
3 21 association, and which is not subject to rate regulation
3 22 pursuant to Code chapter 476.
3 23 The bill provides that to be issued a certificate, an owner
3 24 or operator of a coal=fired merchant power plant must allocate
3 25 one=tenth of 1 percent of gross revenue from the plant's
3 26 operation for the support of the Iowa energy center and the
3 27 center for global and regional environmental research, and
3 28 allocate 2 percent of gross revenue for an energy management
3 29 improvement grant program to be administered by the center for
3 30 energy and environmental education at the university of
3 31 northern Iowa. These allocations may be waived if it is
3 32 determined that such a power plant has achieved other methods
3 33 to offset its production of greenhouse gases and other
3 34 pollutants.
3 35 The bill also requires for issuance of a certificate that
4 1 the owner or operator develop a multiyear plan and budget for
4 2 managing regulated emissions from the power plant in a
4 3 cost=effective manner. The plan and budget is required to be
4 4 submitted to the board together with the application for
4 5 issuance of the certificate, with a copy of the plan and
4 6 budget provided to the department of natural resources. The
4 7 bill references emissions criteria and standards which must be
4 8 met by the plan, requires updates every two years
4 9 incorporating the most up=to=date emissions regulation
4 10 technology, indicates that updates shall be considered in
4 11 contested case proceedings, and directs the department of
4 12 natural resources to determine if a plan or update meets
4 13 applicable state environmental requirements for regulated
4 14 emissions and provide recommendations for compliance. If the
4 15 plan does not meet these requirements, the department shall
4 16 recommend amendments that outline actions necessary to bring
4 17 the plan or update into compliance with the environmental
4 18 requirements. Additionally, provisions relating to time
4 19 frames for plan approval or rejection are contained in the
4 20 bill, and for rulemaking by the board.
4 21 LSB 6374YH 82
4 22 rn/rj/14