House File 2448 - Introduced HOUSE FILE 2448 BY COMMITTEE ON GOVERNMENT OVERSIGHT (SUCCESSOR TO HSB 640) A BILL FOR An Act relating to the construction, erection, maintenance, 1 operation, or sale of specified electric transmission lines, 2 and including effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5563HV (2) 86 rn/sc

H.F. 2448 Section 1. NEW SECTION . 478.6A Merchant line franchises 1 —— requirements —— limitations. 2 1. a. For purposes of this section, “bifurcation” means 3 the conducting of two separate hearings when a petition 4 involves the taking of property under eminent domain, one 5 hearing considering whether the proposed line is necessary to 6 serve a public use and represents a reasonable relationship 7 to an overall plan of transmitting electricity in the public 8 interest, and the other considering the granting of eminent 9 domain authority. 10 b. For purposes of this section, “merchant line” means a 11 high-voltage direct current electric transmission line which 12 does not provide for the erection of electric substations at 13 intervals of less than fifty miles, which substations are 14 necessary to accommodate both the purchase and sale to persons 15 located in this state of electricity generated or transmitted 16 by the franchisee. 17 2. A petition for a franchise to construct a merchant line, 18 in addition to any other applicable requirements pursuant to 19 this chapter, shall be subject to all of the following: 20 a. The board shall not permit the bifurcation in any manner 21 of a petition and shall reject any request by a petitioner for 22 bifurcation. 23 b. Notwithstanding section 478.10, the sale and transfer of 24 a merchant line, by voluntary or judicial sale or otherwise, 25 shall not carry with it the transfer of the franchise. 26 c. Notwithstanding section 478.21, if a petition that 27 involves the taking of property under eminent domain is not 28 approved by the board and a franchise granted within two years 29 following the date of the first informational meeting held in 30 any county regarding the petition, pursuant to section 478.2, 31 the utilities board shall reject the petition and make a record 32 of the rejection. A petitioner may not file a petition for the 33 same or a similar project that has been rejected under this 34 subsection within sixty months following the date of rejection. 35 -1- LSB 5563HV (2) 86 rn/sc 1/ 3

H.F. 2448 d. The board shall not consider a petition that involves 1 the taking of property under eminent domain until a minimum of 2 seventy-five percent of the easements necessary to construct 3 the project have been obtained voluntarily. 4 e. In considering whether to grant a petition that involves 5 the taking of property under eminent domain, section 478.3, 6 subsection 3, is not applicable, and the term “public” shall be 7 interpreted to be limited to consumers located in this state. 8 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 9 immediate importance, takes effect upon enactment. 10 Sec. 3. APPLICABILITY. This Act is applicable to petitions 11 for franchise filed on or after November 1, 2014, that have not 12 been approved by the utilities board on or after the effective 13 date of this Act, and to petitions for franchise filed on or 14 after the effective date of this Act. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill adds provisions in Code chapter 478 applicable to 19 merchant transmission lines. 20 The bill defines a “merchant line” to mean a high-voltage 21 direct current electric transmission line which does not 22 provide for the erection of electric substations at intervals 23 of less than 50 miles, which substations are necessary to 24 accommodate both the purchase and sale to persons located in 25 Iowa of electricity generated or transmitted by the franchisee. 26 The bill defines “bifurcation” to mean the conducting of 27 two separate hearings when a petition involves the taking of 28 property under eminent domain. One hearing is to consider 29 whether the proposed line or lines are necessary to serve 30 a public use and represents a reasonable relationship to 31 an overall plan of transmitting electricity in the public 32 interest, and the other is to consider the granting of eminent 33 domain authority. 34 The bill specifies several requirements, limitations, or 35 -2- LSB 5563HV (2) 86 rn/sc 2/ 3

H.F. 2448 restrictions applicable to merchant lines, in addition to any 1 other applicable provisions in Code chapter 478. The bill 2 provides that the Iowa utilities board shall not permit the 3 bifurcation in any manner of a petition for a franchise to 4 construct a merchant line, and shall reject any request by such 5 a petitioner asking for bifurcation. The bill also provides 6 that the sale and transfer of a merchant line, by voluntary 7 or judicial sale or otherwise, shall not carry with it the 8 transfer of the franchise. 9 The bill additionally provides that if a petition for a 10 franchise to construct a merchant line that involves the taking 11 of property under eminent domain is not approved by the board 12 and a franchise granted within two years following the date 13 of the first informational meeting regarding the petition 14 held in any county, the board shall reject the petition and 15 make a record of the rejection. If this occurs, the bill 16 provides that a petitioner may not file a petition for the same 17 or a similar project within 60 months following the date of 18 rejection. 19 The bill further provides that the board shall not consider 20 a petition for a franchise to construct a merchant line 21 that involves the taking of property under eminent domain 22 until a minimum of 75 percent of the easements necessary to 23 construct the project have been obtained voluntarily and that 24 in considering whether to grant a petition for a franchise 25 to construct a merchant line that involves the taking of 26 property under eminent domain under Code section 478.3, the 27 term “public” shall be interpreted to be limited to consumers 28 located in Iowa. 29 The bill takes effect upon enactment and is applicable 30 to petitions for franchise filed on or after November 1, 31 2014, that have not been approved by the board on the bill’s 32 effective date and to petitions for franchise filed on or after 33 the bill’s effective date. 34 -3- LSB 5563HV (2) 86 rn/sc 3/ 3