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  3 right of way right=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