House File 2551 - Introduced HOUSE FILE 2551 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 698) A BILL FOR An Act relating to electric transmission lines and electric 1 transmission owners, and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5714HV (2) 90 lh/js
H.F. 2551 Section 1. Section 478.16, Code 2024, is amended to read as 1 follows: 2 478.16 Electric transmission lines —— federally registered 3 planning authority transmission plans. 4 1. Development and investment in high-voltage transmission 5 is urgently needed to ensure the reliable, adequate, secure, 6 and stable delivery of electricity to consumers. To ensure 7 reliable electric service to the people of Iowa as a matter 8 of public policy, it is the intent of the general assembly 9 to express a preference for further investment in Iowa 10 transmission infrastructure by electric transmission owners who 11 have already dedicated significant resources to develop the 12 infrastructure on which Iowans rely. 13 1. 2. As used in this section , unless the context otherwise 14 requires: 15 a. “Electric transmission line” means a high-voltage 16 electric transmission line located in this state with a 17 capacity of one hundred kilovolts or more and any associated 18 electric transmission facility, including any substation or 19 other equipment located in this state . 20 b. “Electric transmission owner” means an individual or 21 entity who, as of July 1, 2020, owns and maintains an electric 22 transmission line that is required for rate-regulated electric 23 utilities, municipal electric utilities, and rural electric 24 cooperatives in this state to provide electric service to the 25 public for compensation. 26 c. “Incumbent electric transmission owner” means any of the 27 following , which may be formed, located, or headquartered in 28 any state : 29 (1) A public utility or a municipally owned utility that 30 owns, operates, and maintains an electric transmission line in 31 this state. 32 (2) An electric cooperative corporation or association or 33 municipally owned utility that owns an electric transmission 34 facility in this state and has turned over the functional 35 -1- LSB 5714HV (2) 90 lh/js 1/ 5
H.F. 2551 control of such facility to a federally approved authority. 1 (3) An “electric transmission owner” as defined in paragraph 2 “b” . 3 d. “Landowner” means the same as defined in section 478.2 . 4 e. “Municipally owned utility” means a “city utility” as 5 defined in section 362.2 , or an “electric power agency” as 6 defined in section 390.9 which that is comprised solely of 7 cities or solely of cities and other political subdivisions. 8 2. 3. An incumbent electric transmission owner has the 9 right to construct, own, and maintain an electric transmission 10 line that has been approved for construction in a federally 11 registered planning authority transmission plan and which that 12 directly connects to an electric transmission facility owned by 13 the incumbent electric transmission owner. Where a proposed 14 electric transmission line would directly connect to electric 15 transmission facilities owned by two or more incumbent electric 16 transmission owners, each incumbent electric transmission owner 17 whose facility connects to the electric transmission line 18 has the right to construct, own, and maintain the electric 19 transmission line individually and equally. If an incumbent 20 electric transmission owner declines to construct, own, and 21 maintain its portion of an electric transmission line that 22 would connect to electric transmission facilities owned by 23 two or more incumbent electric transmission owners, then the 24 other incumbent electric transmission owner or owners that 25 own an electric transmission facility to which the electric 26 transmission line connects has the right to construct, own, and 27 maintain the electric transmission line individually. 28 3. 4. If an electric transmission line has been approved 29 for construction in a federally registered planning authority 30 transmission plan after July 1, 2020 , and the electric 31 transmission line is not subject to a right of first refusal in 32 accordance with the tariff of a federally registered planning 33 authority, then within the later of ninety days of approval 34 for construction or ninety days after enactment of this Act , 35 -2- LSB 5714HV (2) 90 lh/js 2/ 5
H.F. 2551 an incumbent electric transmission owner, or owners if there 1 is more than one owner, that owns a connecting electric 2 transmission facility shall give written notice to the board 3 regarding whether the incumbent electric transmission owner 4 or owners intend to construct, own, and maintain the electric 5 transmission line. If the incumbent electric transmission 6 owner or owners give notice of intent to construct the electric 7 transmission line, the incumbent electric transmission owner 8 or owners shall follow the applicable franchise requirements 9 pursuant to this chapter . If the incumbent electric 10 transmission owner or owners give notice declining to construct 11 the electric transmission line or fail to provide timely notice 12 of the intent to construct the project , the board may determine 13 whether another person may construct the electric transmission 14 line. 15 4. 5. For projects where for which an election to construct 16 an electric transmission line has been made under this section , 17 all of the following cost accountability measures shall apply: 18 a. Within thirty days after the issuance of a franchise 19 pursuant to this chapter for the electric transmission line, 20 the incumbent electric transmission owner or owners shall 21 provide to the board an estimate of the cost to construct the 22 electric transmission line. 23 b. Until construction of the electric transmission line 24 is complete, the incumbent electric transmission owner or 25 owners shall provide a quarterly report to the board, which 26 shall include an updated estimate of the cost to construct the 27 electric transmission line and an explanation of changes in the 28 cost estimate from the prior cost estimate. 29 5. 6. This section shall not modify the authority of the 30 board under this chapter , the rights of landowners under this 31 chapter , or the requirements, rights, and obligations relating 32 to the construction, maintenance, and operation of electric 33 transmission lines pursuant to this chapter . 34 6. 7. This section shall not apply to an electric 35 -3- LSB 5714HV (2) 90 lh/js 3/ 5
H.F. 2551 transmission line to be placed underground that has not been 1 approved for construction in a federally registered planning 2 authority transmission plan. 3 7. 8. The board shall adopt rules pursuant to chapter 17A 4 to administer this section . 5 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 6 importance, takes effect upon enactment. 7 Sec. 3. RETROACTIVE APPLICABILITY. The provisions of this 8 Act shall apply retroactively to July 1, 2020. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to electric transmission lines and 13 electric transmission owners. The bill expounds the 14 legislative purpose of Code section 478.16, identifying Iowa 15 consumers’ urgent need for development and investment in 16 high-voltage transmission. The bill provides that an incumbent 17 electric transmission owner may be formed, located, or 18 headquartered in any state as long as the electric transmission 19 line is located in Iowa. 20 Under the bill, an existing electric transmission facility 21 owner has the right to construct, own, and maintain an electric 22 transmission line that directly connects to the electric 23 transmission facility. If a proposed transmission line 24 would directly connect to facilities owned by two or more 25 facility owners, each owner has the right to construct, own, 26 and maintain the electric transmission line individually and 27 equally. 28 After July 1, 2020, approved electric transmission lines not 29 subject to right of first refusal in a federally registered 30 planning authority transmission plan shall give notice to the 31 Iowa utilities board (board) whether the incumbent electric 32 transmission owner or owners intend to construct, own, and 33 maintain the electric transmission line. The notice shall be 34 given within the later of 90 days of approval for construction 35 -4- LSB 5714HV (2) 90 lh/js 4/ 5
H.F. 2551 or 90 days after enactment of the bill. The board may 1 determine whether another person may construct the electric 2 transmission line if the incumbent electric transmission owner 3 or owners give notice declining to construct or do not give 4 timely notice. 5 The bill takes effect upon enactment. 6 The bill applies retroactively to July 1, 2020, for an 7 electric transmission line approved for construction in a 8 federally registered planning authority transmission plan. 9 -5- LSB 5714HV (2) 90 lh/js 5/ 5