House Study Bill 222 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON GOVERNMENT OVERSIGHT BILL BY CHAIRPERSON KAUFMANN) 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 2605YC (4) 86 rn/sc

H.F. _____ Section 1. Section 478.3, subsection 3, Code 2015, is 1 amended to read as follows: 2 3. 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 Sec. 2. Section 478.4, Code 2015, is amended to read as 7 follows: 8 478.4 Franchise —— hearing. 9 1. The utilities board shall consider the petition and 10 any objections filed to it in the manner provided. It shall 11 examine the proposed route or cause any engineer selected 12 by it to do so. If a hearing is held on the petition it may 13 hear testimony as may aid it in determining the propriety of 14 granting the franchise. It may grant the franchise in whole or 15 in part upon the terms, conditions, and restrictions, and with 16 the modifications as to location and route as may seem to it 17 just and proper. Before granting the franchise, the utilities 18 board shall make a finding that the proposed line or lines are 19 necessary to serve a public use and represents a reasonable 20 relationship to an overall plan of transmitting electricity in 21 the public interest. A franchise shall not become effective 22 until the petitioners shall pay, or file an agreement to pay, 23 all costs and expenses of the franchise proceeding, whether 24 or not objections are filed, including costs of inspections 25 or examinations of the route, hearing, salaries, publishing 26 of notice, and any other expenses reasonably attributable to 27 it. The funds received for the costs and the expenses of the 28 franchise proceeding shall be remitted to the treasurer of 29 state for deposit in the department of commerce revolving fund 30 created in section 546.12 as provided in section 476.10 . 31 2. A finding of public use and public interest shall not be 32 made in regard to a petition for a franchise or an extension 33 of franchise if the petition sets forth that the exercise of 34 the right of eminent domain will be used and if the petition 35 -1- LSB 2605YC (4) 86 rn/sc 1/ 4

H.F. _____ is filed by or involves a merchant transmission line or 1 company that sells less than fifty percent of the electricity 2 transmitted through this state by the line or company to a 3 public utility located within this state. For purposes of 4 this subsection, “merchant transmission line or company” means 5 an entity that generates and transmits, or solely transmits, 6 electricity. For purposes of this subsection, “public utility” 7 means the same as defined in section 476.1. 8 Sec. 3. NEW SECTION . 478.34 Severability. 9 If any provision of this chapter or its application to any 10 person or circumstance is held invalid or otherwise rendered 11 ineffective by any entity, the invalidity or ineffectiveness 12 shall not affect other provisions or applications of this 13 chapter that can be given effect without the invalid or 14 ineffective provision or application, and to this end the 15 provisions of this chapter are severable. 16 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 17 immediate importance, takes effect upon enactment. 18 Sec. 5. APPLICABILITY. This Act is applicable to petitions 19 for franchise or extension of franchise filed on or after 20 November 1, 2014, which have not been acted upon by the 21 board on the effective date of this Act, and to petitions for 22 franchise or extension of franchise filed on or after the 23 effective date of this Act. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill modifies provisions applicable to the 28 construction, erection, maintenance, or operation of electric 29 transmission lines contained in Code chapter 478. 30 In determining whether to grant a petition for a franchise to 31 construct, erect, maintain, or operate an electric transmission 32 line, the Iowa utilities board is required to find that, among 33 other requirements, the proposed line or lines are necessary 34 to serve a public use and represents a reasonable relationship 35 -2- LSB 2605YC (4) 86 rn/sc 2/ 4

H.F. _____ to an overall plan of transmitting electricity in the public 1 interest. The bill provides that a finding of public use and 2 public interest shall not be made in the event a petition for 3 a franchise or an extension of franchise sets forth that the 4 exercise of eminent domain will be used and the petition is 5 filed by or involves a merchant transmission line or company 6 that sells less than 50 percent of the electricity transmitted 7 through this state by the line or company to a public utility 8 located within Iowa. The bill defines a “merchant transmission 9 line or company” to mean an entity that generates and 10 transmits, or solely transmits, electricity through this state. 11 The bill defines a “public utility” by referencing a definition 12 contained in Code section 476.1, subsection 3, paragraph “a”, 13 as meaning any person, partnership, business association, or 14 corporation, domestic or foreign, owning or operating any 15 facilities for furnishing gas by piped distribution system or 16 electricity to the public for compensation. 17 Additionally, current Code section 478.3, specifying 18 franchise petition requirements, provides that for the 19 purposes of that Code section, the term “public” shall not be 20 interpreted to be limited to consumers located in Iowa. The 21 bill modifies this provision to instead specify that the term 22 “public” as used in Code chapter 478 in reference to public 23 use, interest, and needs shall refer to and be limited to 24 consumers located in this state. 25 Further, the bill contains a severability provision 26 providing that if any provision of Code chapter 478 or its 27 application to any person or circumstance is held invalid or 28 otherwise rendered ineffective by any entity, the invalidity 29 or ineffectiveness shall not affect other provisions or 30 applications of the Code chapter that can be given effect 31 without the invalid or ineffective provision or application, 32 and to this end the provisions of the Code chapter are 33 severable. 34 The bill takes effect upon enactment and applies to 35 -3- LSB 2605YC (4) 86 rn/sc 3/ 4

H.F. _____ petitions for franchise or extension of franchise filed on 1 or after November 1, 2014, which have not been acted upon by 2 the board on the bill’s effective date, and to petitions for 3 franchise or extension of franchise filed on or after the 4 bill’s effective date. 5 -4- LSB 2605YC (4) 86 rn/sc 4/ 4