Senate Study Bill 1320 SENATE FILE BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to renewable energy by establishing an energy 2 independence renewable energy transmission franchise process 3 which may be used under specified circumstances, providing for 4 an annual transmission line surcharge, and providing for 5 renewable energy job training grants. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 2693SC 83 8 rn/nh/5 PAG LIN 1 1 Section 1. NEW SECTION. 469.11 RENEWABLE ENERGY JOB 1 2 TRAINING GRANT FUND. 1 3 1. A renewable energy job training grant fund is created 1 4 within the state treasury under the control of the office. 1 5 The fund shall be used exclusively for purposes of making 1 6 grants to community colleges established under chapter 260C 1 7 for job training programs in the renewable energy field. 1 8 Eligibility and approval criteria for the grants shall be 1 9 established by the director by rule. 1 10 2. The renewable energy job training grant fund shall 1 11 consist of amounts remitted to the office and deposited into 1 12 the fund pursuant to the surcharge imposed upon the granting 1 13 of an energy independence renewable energy transmission 1 14 franchise under section 478.34. 1 15 3. Moneys in the fund are not subject to section 8.33. 1 16 Notwithstanding section 12C.7, interest or earnings on moneys 1 17 in the fund shall be credited to the fund. Moneys in the fund 1 18 may be used directly to provide grants pursuant to subsection 1 19 1, or may be used to leverage federal dollars allocated for 1 20 job training programs in the renewable energy field. 1 21 Sec. 2. Section 478.18, subsection 2, Code 2009, is 1 22 amended to read as follows: 1 23 2. A transmission line shall be constructed near and 1 24 parallel to roads, to the right=of=way of the railways of the 1 25 state, to existing utility routes, or along the division lines 1 26 of the lands, according to the government survey, wherever the 1 27 same is practicable and reasonable, and so as not to interfere 1 28 with the use by the public of the highways or streams of the 1 29 state, nor unnecessarily interfere with the use of any lands 1 30 by the occupant. 1 31 Sec. 3. Section 478.20, Code 2009, is amended to read as 1 32 follows: 1 33 478.20 DISTANCE FROM BUILDINGS. 1 34 No transmission line shall be constructed, except by 1 35 agreement, within one hundred feet of any dwelling house or 2 1 other building, except where said line crosses or passes along 2 2 a public highway or is located alongside or parallel with the 2 3right of wayright=of=way of any railway company or existing 2 4 utility route. In addition to the foregoing, each person, 2 5 company, or corporation shall conform to any other rules, 2 6 regulations, or specifications established by the utilities 2 7 board, in the construction, operation, or maintenance of such 2 8 lines. 2 9 Sec. 4. NEW SECTION. 478.34 ENERGY INDEPENDENCE 2 10 RENEWABLE ENERGY TRANSMISSION FRANCHISE == OPTIONAL PROCESS. 2 11 1. LEGISLATIVE FINDINGS AND INTENT. The general assembly 2 12 finds that as a matter of public policy and in an effort to 2 13 achieve and sustain economic growth this state must assume a 2 14 leadership role within the broader marketplace of other states 2 15 with regard to energy independence efforts. The general 2 16 assembly also recognizes that the renewable energy resources 2 17 which exist in this state are shared with neighboring states 2 18 and that economic well=being can be enhanced through energy 2 19 resource interconnection and transmission throughout the 2 20 region. The general assembly accordingly declares the 2 21 intention to become a regional leader in renewable energy 2 22 electric transmission corridor development and seeks to 2 23 promote this development through implementation of the 2 24 optional renewable energy franchise procurement process 2 25 established pursuant to this section. 2 26 2. PROCESS ESTABLISHED. An optional energy independence 2 27 renewable energy transmission franchise process is established 2 28 for persons qualifying pursuant to subsection 3 with the 2 29 objective of streamlining and consolidating franchise 2 30 procurement requirements and provisions otherwise applicable 2 31 pursuant to this chapter. 2 32 3. PROCEDURAL REQUEST FOR DETERMINATION OF ELIGIBILITY. 2 33 a. A person seeking an energy independence renewable 2 34 energy transmission franchise shall submit a procedural 2 35 request on a form to be established by the board for 3 1 consideration for an energy independence renewable energy 3 2 transmission franchise pursuant to this section. The board 3 3 shall make a preliminary determination of eligibility to a 3 4 person demonstrating that the proposed electric line 3 5 construction satisfies all of the following requirements: 3 6 (1) Furthers three or more components or recommendations 3 7 contained within the most recent Iowa energy independence plan 3 8 developed and submitted on an annual basis pursuant to section 3 9 469.4. 3 10 (2) Enhances either directly or indirectly the creation 3 11 and retention of high=quality jobs supporting or emanating 3 12 from renewable energy development in this state. 3 13 (3) Facilitates the transmission of electricity from 3 14 renewable energy sources from, across, or through the midwest. 3 15 (4) Allows nondiscriminatory open access for renewable 3 16 energy resources generated in this state on the line for which 3 17 a franchise is sought in a manner set forth by the franchise 3 18 applicant and consistent with currently applicable federal and 3 19 regional regulatory authorities and transmission requirements. 3 20 b. The board shall notify the person seeking the franchise 3 21 of a determination of eligibility or ineligibility within 3 22 thirty days after the filing of the procedural request. 3 23 4. MODIFIED PROCESS. A person determined eligible 3 24 pursuant to subsection 3 may file a petition for an energy 3 25 independence renewable energy transmission franchise pursuant 3 26 to a streamlined process adopted by the board by rule which 3 27 modifies provisions otherwise applicable to obtaining a 3 28 franchise under this chapter, as follows: 3 29 a. The provisions requiring informational meetings and 3 30 notices thereof to be conducted in each impacted county prior 3 31 to the filing of a petition, as specified in section 478.2, 3 32 shall be waived. Informational meetings shall still be 3 33 required, however, in the event of a proposed multicounty 3 34 electric transmission line, with at least one informational 3 35 meeting conducted in a centrally located area within each one 4 1 hundred mile segment of a proposed transmission line. Notice 4 2 of the meetings shall be provided as specified in section 4 3 478.2. 4 4 b. Upon completion of informational meetings as provided 4 5 in paragraph "a", if required, a petition for an energy 4 6 independence renewable energy transmission franchise may be 4 7 filed with the utilities board. A single franchise petition 4 8 may be filed for the entire proposed transmission line rather 4 9 than a separate filing in each county the proposed 4 10 transmission line traverses. 4 11 c. Written notice of the filing of the petition and the 4 12 right to object shall be provided to each landowner who might 4 13 have otherwise received notice of an informational meeting. 4 14 An affidavit stating that such notice has been provided shall 4 15 be included in the petition. 4 16 d. Negotiations for easements and rights=of=way may occur 4 17 with an impacted landowner prior to the filing of the petition 4 18 if an informational meeting as specified in paragraph "a" is 4 19 held within the one hundred mile segment involving that 4 20 impacted landowner's land. 4 21 e. A hearing on the petition, including one in which 4 22 eminent domain is requested, shall be conducted by the board 4 23 as a contested case proceeding pursuant to the provisions of 4 24 chapter 17A. The hearing shall be conducted at the board's 4 25 primary place of business rather than in each county the 4 26 proposed transmission line traverses. The board shall serve 4 27 notice of the hearing in the manner provided in section 4 28 476A.4, subsection 3, upon interested property owners and 4 29 entities, regulatory agencies, and city and county zoning 4 30 authorities, as determined by the board, from the areas which 4 31 the proposed transmission line shall traverse. 4 32 f. If a property owner, entity, regulatory agency, or 4 33 zoning authority which received notice pursuant to paragraph 4 34 "e" fails to appear of record in the contested case 4 35 proceeding, the board shall conclusively presume that the 5 1 party does not object to the petition. A city or county 5 2 zoning authority may appear on record at the hearing and state 5 3 whether the petition meets city, county, or airport zoning 5 4 requirements, as applicable. The failure of a petition to 5 5 meet zoning requirements established pursuant to chapters 329, 5 6 335, and 414 shall not preclude the board from issuance of an 5 7 energy independence renewable energy transmission franchise 5 8 and to that extent the provisions of this subsection shall 5 9 supersede the provisions of chapters 329, 335, and 414. 5 10 g. The hearing on the franchise petition shall be 5 11 conducted no later than one hundred days following the filing 5 12 of the petition pursuant to this subsection. A decision 5 13 regarding issuance of the franchise shall be rendered by the 5 14 board no later than one hundred eighty days following the 5 15 filing of the petition. In the event that eminent domain is 5 16 not requested, these time frames shall be shortened to 5 17 seventy=five days and one hundred twenty days, respectively. 5 18 h. In rendering a decision on a franchise petition under 5 19 this section, the provisions of section 478.4 shall be 5 20 applicable. For purposes of an energy independence renewable 5 21 energy transmission franchise, however, the criteria that a 5 22 proposed transmission line is necessary to serve a public use 5 23 and represents a reasonable relationship to an overall plan of 5 24 transmitting electricity in the public interest shall be 5 25 supported by development of the factors set forth by the 5 26 applicant in the eligibility provisions of subsection 3. 5 27 5. SURCHARGE. Within thirty days of a transmission line 5 28 becoming operational after the granting of a franchise 5 29 petition pursuant to this section, and annually thereafter, 5 30 the person or entity owning or leasing the transmission line 5 31 shall remit a one thousand dollar surcharge per pole mile of 5 32 transmission line operating under the franchise. The 5 33 surcharge shall be remitted to the office of energy 5 34 independence for deposit in the renewable energy job training 5 35 grant fund established in section 469.11. 6 1 6. PROVISIONS OTHERWISE APPLICABLE. To the extent not 6 2 inconsistent with the modified provisions established in this 6 3 section, all other provisions of this chapter relating to 6 4 electric transmission line franchise issuance shall apply to 6 5 an energy independence renewable energy transmission 6 6 franchise. 6 7 7. RULES. The board shall by rule establish additional 6 8 procedures and requirements as necessary to administer this 6 9 section. 6 10 8. UTILITY REPLACEMENT TAX TASK FORCE. The replacement 6 11 tax task force established pursuant to section 437A.15, 6 12 subsection 7, shall, by January 1, 2010, make a recommendation 6 13 to the general assembly, after consulting with the board and 6 14 the office of energy independence, regarding the appropriate 6 15 taxing rate to be applied to an energy independence 6 16 transmission renewable energy franchise. 6 17 EXPLANATION 6 18 This bill establishes an energy independence renewable 6 19 energy transmission franchise with an optional and streamlined 6 20 franchise approval process for eligible applicants. 6 21 The bill provides that a person seeking an energy 6 22 independence renewable energy transmission franchise shall 6 23 submit a procedural request on a form to be established by the 6 24 utilities board of the utilities division of the department of 6 25 commerce for consideration for the franchise. The utilities 6 26 board shall make a preliminary determination of eligibility 6 27 upon a demonstration that the proposed electric line 6 28 construction furthers three or more components or 6 29 recommendations contained within the most recent Iowa energy 6 30 independence plan developed and submitted by the office of 6 31 energy independence, enhances the creation and retention of 6 32 high=quality renewable energy=related jobs in Iowa, 6 33 facilitates the transmission of electricity from renewable 6 34 energy sources, and allows open access for renewable energy 6 35 resources generated in this state. The board shall notify the 7 1 person seeking the franchise of a determination of eligibility 7 2 or ineligibility within 30 days of receiving the procedural 7 3 request. 7 4 The bill provides that an eligible person may file a 7 5 petition for an energy independence renewable energy 7 6 transmission franchise pursuant to streamlined provisions 7 7 modifying those otherwise applicable to obtaining a franchise 7 8 under Code chapter 478. Modifications contained within the 7 9 bill include waiving the requirement of informational meetings 7 10 unless the proposal is for a multicounty transmission line, in 7 11 which case at least one informational meeting shall be 7 12 conducted in a centrally located area within each 100 mile 7 13 segment of proposed transmission line; permitting a single 7 14 franchise petition to be filed for the entire proposed 7 15 transmission line rather than a separate filing in each county 7 16 the proposed transmission line traverses; provision of written 7 17 notice of the filing of the petition and the right to object 7 18 has been provided to each landowner who might have otherwise 7 19 received notice of an informational meeting; and allowing 7 20 easement and rights=of=way negotiations prior to the filing of 7 21 the petition if an informational meeting is held within the 7 22 100 mile segment involving the impacted landowner's land. 7 23 The bill states that a hearing on the petition shall be 7 24 conducted by the board as a contested case proceeding under 7 25 Code chapter 17A at the board's primary place of business, and 7 26 provides notice requirements to property owners, entities, 7 27 regulatory agencies, and city and county zoning authorities 7 28 which parallel current Code provisions relating to utility 7 29 construction franchises. The bill provides that a hearing on 7 30 the franchise petition shall be conducted no later than 100 7 31 days following filing of the petition, to be followed by a 7 32 decision regarding issuance of the franchise no later than 180 7 33 days following filing. In the event that eminent domain is 7 34 not requested, these time frames are shortened to 75 days and 7 35 120 days, respectively. 8 1 The bill provides that current criteria utilized by the 8 2 board in rendering a decision on a franchise petition 8 3 regarding a proposed transmission line or lines being 8 4 necessary to serve a public use and representing a reasonable 8 5 relationship to an overall plan of transmitting electricity in 8 6 the public interest shall be supported by development of the 8 7 factors set forth in establishing eligibility for the optional 8 8 process. 8 9 The bill imposes a $1,000 annual surcharge payable within 8 10 30 days of the granting of a franchise pursuant to the 8 11 expedited process by the owner or lessee of the transmission 8 12 line, and establishes a renewable energy job training grant 8 13 fund under the control of the office of energy independence 8 14 into which the surcharges shall be deposited. The fund shall 8 15 be utilized by the office for grants to community colleges for 8 16 job training programs in the renewable energy field. 8 17 The bill states that current franchise provisions in Code 8 18 chapter 478 shall continue to apply to an energy independence 8 19 renewable energy transmission franchise to the extent not 8 20 inconsistent with the modified provisions contained in the 8 21 bill, and provides that the board shall by rule establish 8 22 additional procedures and requirements as necessary to 8 23 administer the bill's provisions. 8 24 Additionally, the bill directs the utility replacement tax 8 25 task force to make a recommendation to the general assembly, 8 26 after consulting with the board and the office of energy 8 27 independence, regarding the appropriate taxing rate to be 8 28 applied to an energy independence transmission renewable 8 29 energy franchise. The recommendation is to be made by January 8 30 1, 2010. 8 31 The bill also modifies provisions contained in Code chapter 8 32 478 relating to the location of constructed transmission 8 33 lines, and their distance from buildings, to include existing 8 34 utility routes in the location criteria. 8 35 LSB 2693SC 83 9 1 rn/nh/5