General Assembly: 80 (2003 Regular GA) - Chapter 159 - Electric power generation facilities — cogeneration pilot program


Published: 2003-05-30

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472LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 158

3. A city, county, or region that designates an area for a specific type of targeted economic developmentmay apply to the department for purposes of certifying the area as a preapproved development site. The department shall develop criteria for the certification process. 4. Prior to a specific project being developed, a city, county, or region designating the area

for targeted economic development pursuant to this section may apply for and obtain ap- propriate licenses, permits, andapprovals for the typeof targeted economic development proj- ect desired for the area.

Approved May 30, 2003

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CH. 159CH. 159

CHAPTER 159

ELECTRIC POWER GENERATION FACILITIES — COGENERATION PILOT PROGRAM

H.F. 391

ANACT establishing a pilot program for the development of cogeneration facilities, providing for the development of ratemaking principles and rates for pilot program facilities, and providing for a future repeal.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. NEW SECTION. 15.269 COGENERATION PILOT PROGRAM. 1. DEFINITIONS. For purposes of this section, unless the context otherwise requires: a. “Cogeneration pilot project facility”means either a utility-owned cogeneration pilot proj-

ect facility or a qualified cogeneration pilot project facility. Both a utility-owned cogeneration pilot project facility and a qualified cogeneration pilot project facilitymust be approved by the department of economic development for participation in the cogeneration pilot program es- tablished pursuant to subsection 2. b. “Energy sales agreement” means a negotiated agreement for the sale of the electric out-

put from the cogeneration pilot project, between a qualified cogeneration pilot project facility and an electric utility. c. “Qualified cogeneration pilot project facility”means a qualifying facility as defined in the

federal Public Utility Regulation Policies Act of 1978, 16 U.S.C. § 2601 et seq., and related fed- eral regulations. d. “Utility-owned cogeneration pilot project facility” means a cogeneration facility owned,

inwholeor inpart, by a rate-regulatedelectric utility that produces electric energyand thermal energy for commercial purposes and is not a qualifying facility as defined in the federal Public UtilityRegulatoryPoliciesAct of 1978, 16U.S.C. § 2601 et seq., and related federal regulations. 2. PILOT PROGRAM ESTABLISHED. a. It is the policy of this state to foster both the development of cogeneration in Iowa and

related economic development associated with cogeneration projects. It is the policy of this state that cogeneration projects operate to the mutual benefit of busi-

nesses, industry, and electric utilities in Iowa, financially and otherwise. b. A cogeneration pilot program is establishedwithin the department of economic develop-

ment to obtain reliable energy and economic benefits associatedwith successful development of new, Iowa-based, electric power cogeneration strategies. Thedepartment shall develop and administer the cogeneration pilot program, according to the following: (1) Thedepartmentmaychooseup to twoprojects forparticipation in the cogenerationpilot

program:

473 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 159

(a) Each cogeneration pilot project facility must involve two hundred megawatts or less of electricity, in combination with one or more other cogeneration project facilities. (b) Each cogeneration pilot project facility must be constructed in Iowa. (c) Each project chosen for participation in the cogeneration pilot programmust also have

the approval and support of the department for economic development purposes. (2) The department may adopt specific application guidelines and deadlines by rule pur-

suant to chapter 17A, or follow established departmental procedures and guidelines, if appli- cable. The guidelines, rules, and procedures shall not require participation in a cogeneration pilot project or program by any rate-regulated public utility providing retail electric service to more than five hundred twenty thousand customers in the state as of January 1, 2003, but any such utility shall have the option to participate. (3) The department shall assist in the implementation of the cogeneration pilot program,

andmonitor the progress of the participants. The department shall file its initial report assess- ing the results of the pilot program with the general assembly by December 1, 2004, and shall also file yearly pilot program progress updates with the general assembly through December 1, 2007. c. The selection of a cogeneration project under this program does not authorize an electric

utility to furnish or offer to furnish electric services to the public outside its assigned area of service established under sections 476.22 through 476.26. 3. FUTURE REPEAL. This section is repealed July 1, 2007. However, any utilities board

proceeding that involves a cogeneration pilot project facility that is pending on July 1, 2007, and that is being conducted pursuant to section 476.53 shall be completed notwithstanding the repeal of this section.

Sec. 2. Section 476.53, Code 2003, is amended by adding the following new subsection: NEW SUBSECTION. 2A. For purposes of this section, unless the context otherwise re-

quires, the terms “cogeneration pilot project facility”, “energy sales agreement”, “qualified co- generation pilot project facility”, and “utility-owned cogeneration pilot project facility” mean the same as defined in section 15.269.

Sec. 3. Section 476.53, subsections 3 and 4, Code 2003, are amended to read as follows: 3. a. If a rate-regulated public utility files The board shall specify in advance, by order is-

sued after a contested case proceeding, the ratemaking principles that will apply when the costs of the electric power generating facility, alternate energy production facility, cogenera- tion pilot project facility, or energy sales agreement are included in regulated electric rates whenever a rate-regulated public utility does any of the following: (1) Files an application pursuant to section 476A.3 to construct in Iowa a baseload electric

power generating facility with a nameplate generating capacity equal to or greater than three hundredmegawatts or a combined-cycle electric power generating facility, or an alternate en- ergy production facility as defined in section 476.42, or if a rate-regulated public utility leases. (2) Leases or owns in Iowa, in whole or in part, a new baseload electric power generating

facility with a nameplate generating capacity equal to or greater than three hundred mega- watts or a combined-cycle electric powergenerating facility, or anewalternate energyproduc- tion facility as defined in section 476.42, the board shall specify in advance, by order issued after a contested case proceeding, the ratemaking principles that will apply when the costs of the facility are included in regulated electric rates. (3) Enters into an agreement for the purchase of the electric power output of a qualified co-

generation pilot project facility or constructs a utility-owned cogeneration pilot project facility pursuant to section 15.269. b. In determining the applicable ratemaking principles, the board shall not be limited to

traditional ratemaking principles or traditional cost recovery mechanisms. c. In determining the applicable ratemaking principles, the board shall make the following

findings: (1) The rate-regulated public utility has in effect a board-approved energy efficiency plan

as required under section 476.6, subsection 19.

474LAWS OF THE EIGHTIETH G.A., 2003 SESSIONCH. 159

(2) The rate-regulated public utility has demonstrated to the board that the public utility has considered other sources for long-term electric supply and that the facility, or lease, or cogen- eration pilot project facility is reasonablewhen compared to other feasible alternative sources of supply. The rate-regulated public utility may satisfy the requirements of this subparagraph through a competitive bidding process, under rules adopted by the board, that demonstrate the facility, energy sales agreement, or lease is a reasonable alternative tomeet its electric sup- ply needs. d. The applicable ratemaking principles shall be determined in a contested case proceed-

ing, which proceedingmay be combined with the proceeding for issuance of a certificate con- ducted pursuant to chapter 476A. e. The order setting forth the applicable ratemaking principles shall be issued prior to the

commencement of construction or lease of the facility, or execution of an energy sales agree- ment related to the cogeneration pilot project facility. f. Following issuance of the order, the rate-regulated public utility shall have the option of

proceedingwith construction or lease of the facility in Iowaorwithdrawing according to either of the following: (1) Withdrawing its application for a certificate under pursuant to chapter 476A. (2) Proceeding with the construction or lease of the facility or implementation of an energy

sales agreement related to a cogeneration pilot project facility. g. Notwithstanding any provision of this chapter to the contrary, the ratemaking principles

established by the order issued pursuant to paragraph “e” shall be binding with regard to the specific electric power generating facility or cogeneration pilot project facility in any subse- quent rate proceeding. 4. The utilities board and the consumer advocate may employ additional temporary staff,

or may contract for professional services with persons who are not state employees, as the board and the consumer advocate deem necessary to perform required functions as provided in this section, includingbut not limited to reviewof powerpurchase contracts, reviewof emis- sion plans and budgets, and review of ratemaking principles proposed for construction or lease of a new generating facility or a cogeneration pilot project facility. Beginning July 1, 2002, there is appropriated out of any funds in the state treasury not otherwise appropriated, such sums as may be necessary to enable the board and the consumer advocate to hire addi- tional staff and contract for services under this section. The costs of the additional staff and services shall be assessed to the utilities pursuant to the procedure in section 476.10 and sec- tion 475A.6.

Sec. 4. Section 476.53, Code 2003, is amended by adding the following new subsection: NEW SUBSECTION. 5. DETERMINATION OF AVOIDED COST FOR COGENERATION

PROJECTS. a. Aqualified cogenerationpilot project facilitymay file a petitionwith the board for a deter-

mination of the avoided cost of an electric utility as provided in the federal Public Utility Regu- latory PoliciesAct of 1978 and related federal regulations, if such a determinationhas not been made within the last twenty-four months or if there is reason to believe the avoided cost has changed. b. The board shall issue its determination of the electric utility’s avoided cost within one

hundred twenty days after the petition is filed. c. The board, for good cause shown, may extend the deadline for issuing the decision for

an additional period not to exceed one hundred twenty days. d. The board shall not issue a decision under this subsection without providing notice and

an opportunity for hearing. e. The utilities board and the consumer advocate may employ additional temporary staff,

or may contract for professional services with persons who are not state employees, as the board and the consumer advocate deem necessary to perform required functions as provided in this subsection. There is appropriated out of any funds in the state treasury not otherwise appropriated, such sums asmay be necessary to enable the board and the consumer advocate

475 LAWS OF THE EIGHTIETH G.A., 2003 SESSION CH. 161

to hire additional staff and contract for services under this section. The costs of the additional staff and services shall be assessed to the electric utility pursuant to the procedure in sections 476.10 and 475A.6.

Approved May 30, 2003

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CH. 160CH. 160

CHAPTER 160

COMMUNITY ATTRACTION AND TOURISM PROGRAM — REGIONAL MARKETING

H.F. 394

AN ACT relating to the purposes of the community attraction and tourism program.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 15F.202, subsection 1, Code 2003, is amended to read as follows: 1. The board shall establish and the department, subject to direction and approval by the

board, shall administer a community attraction and tourism program to assist communities in the development, and creation, and regional marketing of multiple-purpose attraction or tourism facilities.

Approved May 30, 2003

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CH. 161CH. 161

CHAPTER 161

GOVERNMENT ETHICS DISCLOSURE REPORTS — EXPENDITURES ON GIFTS AND BY LOBBYISTS’ CLIENTS

H.F. 583

ANACT relating to governmental ethics disclosure reports, including reports related to recep- tions for members of the general assembly during session detailing food, beverage, and entertainment received by public officials and public employees, and reports filed by cli- ents of lobbyists before the general assembly and the executive branch pertaining tomon- eys paid for lobbying purposes.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 68B.22, subsection 4, paragraph e, Code 2003, is amended to read as fol- lows: e. Anything available or distributed free of charge tomembers of the general publicwithout

regard to the official status of the recipient. This paragraph shall not apply to receptions de- scribed under paragraph “r”.