Senate Study Bill 1217 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON SCHULTZ) A BILL FOR An Act relating to the construction, ownership, and maintenance 1 of certain electric transmission lines. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2218XC (2) 89 jda/rn

S.F. _____ Section 1. Section 478.16, subsection 1, Code 2021, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . 0a. “Electric power agency” means the same 3 as defined in section 390.9, which is comprised solely of 4 cities or solely of cities and other political subdivisions. 5 Sec. 2. Section 478.16, subsection 1, paragraph e, Code 6 2021, is amended to read as follows: 7 e. “Municipally owned utility” means a “city utility” as 8 defined in section 362.2 , or an “electric power agency” as 9 defined in section 390.9 which is comprised solely of cities 10 or solely of cities and other political subdivisions electric 11 power agency . 12 Sec. 3. Section 478.16, subsection 3, Code 2021, is amended 13 to read as follows: 14 3. If an electric transmission line has been approved for 15 construction in a federally registered planning authority 16 transmission plan, and the electric transmission line is 17 not subject to a right of first refusal in accordance with 18 the tariff of a federally registered planning authority, 19 then within ninety days of approval for construction, an 20 incumbent electric transmission owner, or owners if there 21 is more than one owner, that owns a connecting electric 22 transmission facility shall give written notice to the board 23 regarding whether the incumbent electric transmission owner 24 or owners intend to construct, own, and maintain the electric 25 transmission line. If the incumbent electric transmission 26 owner or owners give notice of intent to construct the electric 27 transmission line, the incumbent electric transmission owner 28 or owners shall follow the applicable franchise requirements 29 pursuant to this chapter . 30 a. If the incumbent electric transmission owner or owners 31 give notice declining to construct the electric transmission 32 line, the board may determine whether another person may 33 construct the electric transmission line. 34 b. If the incumbent electric transmission owner or owners 35 -1- LSB 2218XC (2) 89 jda/rn 1/ 3

S.F. _____ fail to give notice of intent to construct, own, and maintain 1 the electric transmission line within ninety days after 2 approval for construction, any electric utility may submit a 3 franchise application pursuant to section 478.1 to construct, 4 own, and maintain the electric transmission line. 5 Sec. 4. Section 478.16, Code 2021, is amended by adding the 6 following new subsections: 7 NEW SUBSECTION . 3A. Within one hundred eighty days after an 8 incumbent electric transmission owner or owners have elected 9 to construct an electric transmission line under this section, 10 the incumbent electric transmission owner or owners shall 11 submit a transmission facility petition to the board. The 12 incumbent electric transmission owner or owners shall commence 13 construction of the electric transmission line within eighteen 14 months after the date the incumbent electric transmission owner 15 or owners provide to the board an estimate of the cost to 16 construct the electric transmission line pursuant to subsection 17 4, paragraph “a” , unless otherwise approved by the board after 18 notice and hearing. 19 NEW SUBSECTION . 4A. A municipally owned utility may assign 20 its rights under this section to an electric power agency 21 serving as its wholesale power supplier or any other affiliated 22 electric power agency. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to the construction, ownership, and 27 maintenance of certain electric transmission lines. 28 The bill defines “electric power agency” by reference to 29 Code section 390.9, as an entity financing or acquiring an 30 electric power facility pursuant Code chapter 390, 28E, or 28F, 31 which is comprised solely of cities or solely of cities and 32 other political subdivisions. 33 The bill provides that, if the incumbent electric 34 transmission owner or owners fail to give notice of intent to 35 -2- LSB 2218XC (2) 89 jda/rn 2/ 3

S.F. _____ construct, own, and maintain the electric transmission line 1 within 90 days after approval pursuant to Code section 478.16, 2 subsection 3, any electric utility may submit a franchise 3 application to construct, own, and maintain the electric 4 transmission line. 5 The bill requires an incumbent electric transmission owner 6 or owners to submit a transmission facility petition to the 7 utilities board within 180 days after electing to construct 8 an electric transmission line pursuant to Code section 9 478.16. Additionally, the bill requires the incumbent electric 10 transmission owner or owners to commence construction of the 11 electric transmission line within 18 months after the date the 12 incumbent electric transmission owner or owners provide to 13 the board an estimate of the cost to construct the electric 14 transmission line, unless otherwise approved by the board. 15 The bill authorizes a municipally owned utility to assign 16 its rights under Code section 478.16 to an electric power 17 agency serving as its wholesale power supplier or any other 18 affiliated electric power agency. 19 -3- LSB 2218XC (2) 89 jda/rn 3/ 3