House File 620 - Introduced HOUSE FILE 620 BY COMMITTEE ON GOVERNMENT OVERSIGHT (SUCCESSOR TO HSB 222) A BILL FOR An Act modifying provisions applicable to the construction, 1 erection, maintenance, or operation of electric transmission 2 lines, and including effective date and applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2605HV (2) 86 rn/sc

H.F. 620 Section 1. Section 478.3, subsection 3, Code 2015, is 1 amended to read as follows: 2 3. a. For the purpose of this section chapter , the term 3 “public” when used in relation to public interest, public use, 4 or needs of the public shall not be interpreted to refer to and 5 be limited to consumers located in this state. 6 b. Paragraph “a” shall not apply to a transmission line, 7 wire, or cable that is capable of operating at an electric 8 voltage of thirty-four and one-half kilovolts or greater 9 and that primarily provides electricity through alternating 10 current and is used by rate-regulated electric utilities, 11 municipal electric utilities, rural electric cooperatives, or 12 electric transmission owners to provide electric service to the 13 aforementioned utilities or to the public for compensation. 14 Sec. 2. Section 478.4, Code 2015, is amended to read as 15 follows: 16 478.4 Franchise —— hearing. 17 1. The utilities board shall consider the petition and 18 any objections filed to it in the manner provided. It shall 19 examine the proposed route or cause any engineer selected 20 by it to do so. If a hearing is held on the petition it may 21 hear testimony as may aid it in determining the propriety of 22 granting the franchise. It may grant the franchise in whole or 23 in part upon the terms, conditions, and restrictions, and with 24 the modifications as to location and route as may seem to it 25 just and proper. Before granting the franchise, the utilities 26 board shall make a finding that the proposed line or lines are 27 necessary to serve a public use and represents a reasonable 28 relationship to an overall plan of transmitting electricity in 29 the public interest. A franchise shall not become effective 30 until the petitioners shall pay, or file an agreement to pay, 31 all costs and expenses of the franchise proceeding, whether 32 or not objections are filed, including costs of inspections 33 or examinations of the route, hearing, salaries, publishing 34 of notice, and any other expenses reasonably attributable to 35 -1- LSB 2605HV (2) 86 rn/sc 1/ 4

H.F. 620 it. The funds received for the costs and the expenses of the 1 franchise proceeding shall be remitted to the treasurer of 2 state for deposit in the department of commerce revolving fund 3 created in section 546.12 as provided in section 476.10 . 4 2. a. A finding of public use and public interest shall 5 not be made in regard to a petition for a franchise if the 6 petition sets forth that the exercise of the right of eminent 7 domain will be used and if the petition primarily involves 8 construction of a high-voltage direct current line and 9 the petition does not provide for the erection of electric 10 substations at intervals of less than fifty miles, which is 11 necessary to accommodate both the purchase and sale to persons 12 located in this state of electricity generated or transmitted 13 by the franchisee. 14 b. Paragraph “a” shall not apply to a transmission line, 15 wire, or cable that is capable of operating at an electric 16 voltage of thirty-four and one-half kilovolts or greater 17 and that primarily provides electricity through alternating 18 current and is used by rate-regulated electric utilities, 19 municipal electric utilities, rural electric cooperatives, or 20 electric transmission owners to provide electric service to the 21 aforementioned utilities or to the public for compensation. 22 Sec. 3. NEW SECTION . 478.34 Severability. 23 If any provision of this chapter or its application to any 24 person or circumstance is held invalid or otherwise rendered 25 ineffective by any entity, the invalidity or ineffectiveness 26 shall not affect other provisions or applications of this 27 chapter that can be given effect without the invalid or 28 ineffective provision or application, and to this end the 29 provisions of this chapter are severable. 30 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 31 immediate importance, takes effect upon enactment. 32 Sec. 5. APPLICABILITY. This Act is applicable to petitions 33 for franchise filed on or after November 1, 2014, which have 34 not been acted upon by the board on the effective date of this 35 -2- LSB 2605HV (2) 86 rn/sc 2/ 4

H.F. 620 Act, and to petitions for franchise filed on or after the 1 effective date of this Act. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill modifies provisions applicable to the 6 construction, erection, maintenance, or operation of electric 7 transmission lines contained in Code chapter 478. 8 In determining whether to grant a petition for a franchise to 9 construct, erect, maintain, or operate an electric transmission 10 line, the Iowa utilities board is required to find that, among 11 other requirements, the proposed line or lines are necessary 12 to serve a public use and represents a reasonable relationship 13 to an overall plan of transmitting electricity in the public 14 interest. The bill provides that a finding of public use and 15 public interest shall not be made in the event a petition for 16 a franchise primarily involves construction of a high-voltage 17 direct current line and the petition does not provide for the 18 erection of electric substations at intervals of less than 50 19 miles, which is necessary to accommodate both the purchase and 20 sale to persons located in Iowa of electricity generated or 21 transmitted by the franchisee. 22 Additionally, current Code section 478.3, specifying 23 franchise petition requirements, provides that for the 24 purposes of that Code section, the term “public” shall not be 25 interpreted to be limited to consumers located in Iowa. The 26 bill modifies this provision to instead specify that the term 27 “public” as used in Code chapter 478 in reference to public 28 use, interest, and needs shall refer to and be limited to 29 consumers located in this state. 30 With reference to both the restriction against a finding 31 of public use and public interest for the high-voltage 32 direct current line and the limitation of the term “public” 33 to consumers located in Iowa, the bill provides that these 34 provisions shall not apply to a transmission line, wire, or 35 -3- LSB 2605HV (2) 86 rn/sc 3/ 4

H.F. 620 cable that is capable of operating at an electric voltage 1 of 34 and one-half kilovolts or greater that primarily 2 provides electricity through alternating current and is 3 used by rate-regulated electric utilities, municipal 4 electric utilities, rural electric cooperatives, or electric 5 transmission owners to provide electric service to the 6 aforementioned utilities or to the public for compensation. 7 Further, the bill contains a severability provision 8 providing that if any provision of Code chapter 478 or its 9 application to any person or circumstance is held invalid or 10 otherwise rendered ineffective by any entity, the invalidity 11 or ineffectiveness shall not affect other provisions or 12 applications of the Code chapter that can be given effect 13 without the invalid or ineffective provision or application, 14 and to this end the provisions of the Code chapter are 15 severable. 16 The bill takes effect upon enactment and applies to 17 petitions for franchise filed on or after November 1, 2014, 18 which have not been acted upon by the board on the bill’s 19 effective date, and to petitions for franchise filed on or 20 after the bill’s effective date. 21 -4- LSB 2605HV (2) 86 rn/sc 4/ 4