HF 426 (LSB 1981YH (2) 86)

HOUSE FILE 426

BY  ISENHART, KELLEY, STAED, McCONKEY, KEARNS, HANSON, FORBES, GAINES, WESSEL-KROESCHELL, DUNKEL, DAWSON, LENSING, BENNETT, T. TAYLOR, WINCKLER, ANDERSON, KRESSIG, BROWN-POWERS, and GASKILL

A BILL FOR

An Act relating to solar energy purchase requirements applicable to certain electric utilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476.44, subsection 2, Code 2015, is amended to read as follows:
   2.  a.  (1)  An electric utility subject to this subchapter, except a utility that elects rate regulation pursuant to section 476.1A, shall not be required, by January 1, 2020, to own or purchase, at any one time, more than its share of one hundred five megawatts of power from alternative energy production facilities or small hydro solar energy facilities located in this state at the rates established pursuant to section 476.43. The board shall allocate the one hundred five megawatts based upon each utility’s percentage of the total Iowa retail peak demand, for the year beginning January 1, 1990 2015, of all utilities subject to this section. If a utility undergoes reorganization as defined in section 476.76, the board shall combine the allocated purchases of power for each utility involved in the reorganization.
   (2)  In satisfying the solar energy ownership or purchase requirements pursuant to subparagraph (1), a minimum of ten percent of the energy produced or purchased shall be produced by or purchased from solar energy facilities with a nameplate generating capacity of twenty kilowatts or less.
   b.  Notwithstanding the one hundred five megawatt maximum requirement, the board may increase the amount of power solar energy that a utility is required to own or purchase at the rates established pursuant to section 476.43 if the board finds that a utility, including a reorganized utility, exceeds its 1990 2015 Iowa retail peak demand by twenty percent and the additional power solar energy the utility is required to purchase will encourage the development of alternate energy production facilities and small hydro solar energy facilities. The increase shall not exceed the utility’s increase in peak demand multiplied by the ratio of the utility’s share of the one hundred five megawatt maximum requirement to its 1990 2015 Iowa retail peak demand.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill specifies solar energy purchase requirements applicable to electric public utilities.
   Currently, electric utilities are required to own alternate energy production facilities or small hydro facilities located in Iowa, or to enter into long-term contracts to purchase or wheel electricity from such facilities. Alternate energy production facilities are defined in Code section 476.42 to include solar, wind turbine, waste management, resource recovery, refuse-derived fuel, agricultural crops or residues, or woodburning facilities.
   There is a limitation on the amount of electricity required to be produced by a facility which is owned by an electric utility, or purchased or wheeled from an alternate energy production facility or small hydro facility. An electric utility is not required to own or purchase, at any one time, more than its share of 105 megawatts of power from alternate energy production facilities or small hydro facilities.
   The bill modifies the 105 megawatt purchase requirement and limitation to make it applicable strictly to solar energy derived from solar energy facilities in this state. The 105 megawatt solar energy ownership or purchase requirements must be attained by January 1, 2020. The bill provides that out of this amount, a minimum of 10 percent of the energy produced or purchased shall be produced by or purchased from solar energy facilities with a nameplate generating capacity of 20 kilowatts or less. The bill makes conforming changes to related provisions.