H.F. 2151 Section 1. Section 28F.1, unnumbered paragraphs 3 and 4, 1 Code 2009, are amended by striking the unnumbered paragraphs. 2 Sec. 2. Section 28F.2, subsection 1, Code 2009, is amended 3 to read as follows: 4 1. “Electric power agency” means an entity financing or 5 acquiring electric power facilities pursuant to this chapter 6 or chapter 28E or 476A . 7 Sec. 3. Section 390.1, subsections 3 and 10, Code 2009, are 8 amended to read as follows: 9 3. “City utility” has the same meaning provided in section 10 362.2, subsection 6, and includes a “combined utility system” , 11 as defined in section 384.80, which operates facilities for the 12 generation or transmission of electric energy and an electric 13 power agency, as defined in section 476A.20 . 14 10. “Participant” means a city, electric 15 co-operative cooperative or privately owned utility company , or 16 an electric power agency, as defined in section 476A.20, which 17 is a party to a joint agreement. 18 Sec. 4. Section 476A.20, subsections 1 and 2, Code 2009, are 19 amended to read as follows: 20 1. “Electric power agency” means an entity as defined in 21 section 28F.2 financing or acquiring electric power facilities 22 pursuant to this subchapter or chapters 28E or 28F . 23 2. “Facility” , “joint facility” , “electric power facility” , 24 or “project” means an electric power generating plant, or 25 transmission line or system, as defined in section 476A.1 , or a 26 joint facility, as defined in section 390.1, subsection 7 . 27 Sec. 5. Section 476A.20, Code 2009, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 2A. “Joint agreement” means an agreement 30 of participants in connection with the acquisition, planning, 31 financing, operation, and maintenance of a joint facility, 32 consisting of one or more documents, and entitled joint 33 agreement, agreement, contract, or otherwise. 34 Sec. 6. Section 476A.21, Code 2009, is amended to read as 35 -1- LSB 5210YH (3) 83 rn/sc 1/ 3

H.F. 2151 follows: 1 476A.21 Electric power agency —— general authority. 2 1. In addition to other powers conferred upon an electric 3 power agency by chapter 28F or other applicable law, an 4 electric power agency may enter into and carry out joint 5 agreements with other participants for the acquisition of 6 ownership of a joint facility and for the planning, financing, 7 operation, and maintenance of the joint facility, as provided 8 in this subchapter. 9 2. An electric power agency may be organized as a nonprofit 10 corporation, limited liability company, or as a separate 11 administrative or legal entity pursuant to chapter 28E. When 12 the electric power agency is comprised solely of cities or 13 solely of cities and other political subdivisions, the electric 14 power agency shall, for the purposes of exercising the powers 15 conferred in this subchapter, be a political subdivision of the 16 state of Iowa with the name under which it was organized. 17 EXPLANATION 18 This bill modifies provisions applicable to the formation 19 and operation of electric power agencies. Such agencies are 20 authorized pursuant to Code chapters 28F and 476A, subchapter 21 II, to enter into joint agreements with other agencies or 22 entities for the financing, acquisition, and operation of 23 projects for the generation and transmission of electric 24 energy. 25 The bill deletes provisions currently contained in Code 26 chapter 28F requiring voter approval for a city to join another 27 entity to finance electric power facilities and prohibiting 28 submission of the same or similar proposal to the voters sooner 29 than one year from the date of the election at which the 30 proposal was defeated. 31 The bill also modifies the definition of “electric power 32 agency” in Code section 28F.2, subsection 1, to eliminate a 33 circular reference to the same definition in Code section 34 476A.20, subsection 1, and adds references to the definition of 35 -2- LSB 5210YH (3) 83 rn/sc 2/ 3

H.F. 2151 electric power agency in Code section 476A.20, subsection 1, to 1 the definitions of city utility and participant in Code section 2 390.1, subsections 3 and 10, with regard to the formation and 3 operation of joint electrical utilities. 4 The bill expands the definition of “facility” contained in 5 Code chapter 476A.20, subsection 2, to also refer to a joint 6 facility, electric power facility, or project, and to include 7 a joint facility as defined in Code section 390.1, subsection 8 7. That definition refers to all property necessary or useful 9 for generating, purchasing, obtaining by exchange or otherwise 10 acquiring, or transmitting electric power and energy, which 11 is owned and operated pursuant to a joint agreement. The 12 bill also defines “joint agreement” to mean an agreement of 13 participants to acquire, plan, finance, operate, and maintain 14 a joint facility, consisting of one or more documents, and 15 entitled joint agreement, agreement, contract, or otherwise. 16 Additionally, the bill provides that an electric power 17 agency may be organized under Code chapter 476A as a nonprofit 18 corporation, limited liability company, or as a separate 19 administrative or legal entity pursuant to Code chapter 28E. 20 When the electric power agency is comprised solely of cities 21 or solely of cities and other political subdivisions, the bill 22 specifies that the electric power agency shall be a political 23 subdivision of the state of Iowa for purposes of exercising the 24 powers conferred in Code chapter 476A, subchapter II. 25 -3- LSB 5210YH (3) 83 rn/sc 3/ 3