Senate File 241 - Introduced SENATE FILE BY BOLKCOM Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act specifying an increasing percentage of electricity to be 2 owned or purchased by electric utilities from alternative 3 energy production facilities. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2177XS 82 6 rn/es/88 PAG LIN 1 1 Section 1. Section 476.41, Code 2007, is amended to read 1 2 as follows: 1 3 476.41 PURPOSE == FINDINGS. 1 4 1. It is the policy of this state to encourage the 1 5 development of alternate energy production facilities and 1 6 small hydro facilities in order to conserve our finite and 1 7 expensive energy resources and to provide for their most 1 8 efficient use. 1 9 2. The general assembly finds all of the following: 1 10 a. Alternate energy production provides valuable economic 1 11 development, creates high quality jobs, promotes energy 1 12 independence, and contributes to the stabilization of 1 13 electricity costs. 1 14 b. Alternate energy production can replace fossil fuel 1 15 electricity production and facilitate important environmental 1 16 benefits, including a reduction in the level of pollutants 1 17 contributing to air and water pollution. 1 18 c. Prescribing a standard for alternate energy production 1 19 is an established means utilized by other states to encourage 1 20 alternate energy development and attain the resulting economic 1 21 and environmental benefits, and will enable this state to be 1 22 recognized as a national leader in all forms of alternate 1 23 energy production. 1 24 Sec. 2. Section 476.44, subsection 2, Code 2007, is 1 25 amended by striking the subsection and inserting in lieu 1 26 thereof the following: 1 27 2. a. An electric utility subject to this division, 1 28 except as provided in paragraph "b", shall be required to own 1 29 or purchase at least the following percentages of its total 1 30 annual Iowa retail electric sales from alternate energy 1 31 production facilities or small hydro facilities at the rates 1 32 established pursuant to section 476.43: 1 33 (1) By December 31, 2010, ten percent. 1 34 (2) By December 31, 2015, fifteen percent. 1 35 (3) By December 31, 2020, twenty percent. 2 1 b. An electric utility that serves fewer than ten thousand 2 2 total customers may elect to be excluded from the requirements 2 3 of paragraph "a". The number of customers served shall be 2 4 based on data required to be reported by the utility on an 2 5 annual electric utility report filed with the energy 2 6 information administration of the United States department of 2 7 energy, commonly referred to as form 861, or its successor 2 8 form. 2 9 EXPLANATION 2 10 This bill requires electric utilities to own or purchase 2 11 increasing percentages of their total annual Iowa retail 2 12 electric sales from alternate energy production facilities or 2 13 small hydro facilities by specified dates. 2 14 Code section 476.42 defines an alternate energy production 2 15 facility to include a solar, wind turbine, waste management, 2 16 resource recovery, refuse=derived fuel, agricultural crops or 2 17 residues, or woodburning facility, and includes land, systems, 2 18 buildings, or improvements that are located at the project 2 19 site and transmission or distribution facilities necessary to 2 20 conduct the energy produced by the facility within the 2 21 definition. A small hydro facility is defined to include a 2 22 hydroelectric facility at a dam, and land, systems, buildings, 2 23 or improvements that are located at the project site and 2 24 transmission or distribution facilities necessary to conduct 2 25 the energy produced by the facility. 2 26 The bill provides that an electric utility shall be 2 27 required to own or purchase 10 percent of its total annual 2 28 Iowa retail electric sales from alternate energy production 2 29 facilities or small hydro facilities by December 31, 2010. 2 30 This percentage is increased to 15 percent by December 31, 2 31 2015, and to 20 percent by December 31, 2020. 2 32 An exclusion is available for an electric utility that 2 33 serves fewer than 10,000 total customers. The bill provides 2 34 that the number of customers served shall be based on data 2 35 required to be reported by the utility on an annual electric 3 1 utility report filed with the energy information 3 2 administration of the United States department of energy, 3 3 commonly referred to as form 861, or its successor form. 3 4 LSB 2177XS 82 3 5 rn:nh/es/88