Senate File 242 - Introduced
SENATE FILE
BY BOLKCOM
A BILL FOR
1 An Act relating to solar energy purchase requirements
2 applicable to certain electric utilities.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1981XS (1) 86
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PAG LIN
1 1 Section 1. Section 476.44, subsection 2, Code 2015, is
1 2 amended to read as follows:
1 3 2. a. (1) An electric utility subject to this subchapter,
1 4 except a utility that elects rate regulation pursuant to
1 5 section 476.1A, shall not be required, by January 1, 2020,
1 6 to own or purchase, at any one time, more than its share of
1 7 one hundred five megawatts of power from alternative energy
1 8 production facilities or small hydro solar energy facilities
1 9 located in this state at the rates established pursuant to
1 10 section 476.43. The board shall allocate the one hundred five
1 11 megawatts based upon each utility's percentage of the total
1 12 Iowa retail peak demand, for the year beginning January 1, 1990
1 13 2015, of all utilities subject to this section. If a utility
1 14 undergoes reorganization as defined in section 476.76, the
1 15 board shall combine the allocated purchases of power for each
1 16 utility involved in the reorganization.
1 17 (2) In satisfying the solar energy ownership or purchase
1 18 requirements pursuant to subparagraph (1), a minimum of ten
1 19 percent of the energy produced or purchased shall be produced
1 20 by or purchased from solar energy facilities with a nameplate
1 21 generating capacity of twenty kilowatts or less.
1 22 b. Notwithstanding the one hundred five megawatt maximum
1 23 requirement, the board may increase the amount of power solar
1 24 energy that a utility is required to own or purchase at the
1 25 rates established pursuant to section 476.43 if the board
1 26 finds that a utility, including a reorganized utility, exceeds
1 27 its 1990 2015 Iowa retail peak demand by twenty percent and
1 28 the additional power solar energy the utility is required to
1 29 purchase will encourage the development of alternate energy
1 30 production facilities and small hydro solar energy facilities.
1 31 The increase shall not exceed the utility's increase in peak
1 32 demand multiplied by the ratio of the utility's share of the
1 33 one hundred five megawatt maximum requirement to its 1990 2015
1 34 Iowa retail peak demand.
1 35 EXPLANATION
2 1 The inclusion of this explanation does not constitute agreement with
2 2 the explanation's substance by the members of the general assembly.
2 3 This bill specifies solar energy purchase requirements
2 4 applicable to electric public utilities.
2 5 Currently, electric utilities are required to own alternate
2 6 energy production facilities or small hydro facilities located
2 7 in Iowa, or to enter into long=term contracts to purchase or
2 8 wheel electricity from such facilities. Alternate energy
2 9 production facilities are defined in Code section 476.42
2 10 to include solar, wind turbine, waste management, resource
2 11 recovery, refuse=derived fuel, agricultural crops or residues,
2 12 or woodburning facilities.
2 13 There is a limitation on the amount of electricity required
2 14 to be produced by a facility which is owned by an electric
2 15 utility, or purchased or wheeled from an alternate energy
2 16 production facility or small hydro facility. An electric
2 17 utility is not required to own or purchase, at any one time,
2 18 more than its share of 105 megawatts of power from alternate
2 19 energy production facilities or small hydro facilities.
2 20 The bill modifies the 105 megawatt purchase requirement
2 21 and limitation to make it applicable strictly to solar energy
2 22 derived from solar energy facilities in this state. The 105
2 23 megawatt solar energy ownership or purchase requirements must
2 24 be attained by January 1, 2020. The bill provides that out of
2 25 this amount, a minimum of 10 percent of the energy produced
2 26 or purchased shall be produced by or purchased from solar
2 27 energy facilities with a nameplate generating capacity of
2 28 20 kilowatts or less. The bill makes conforming changes to
2 29 related provisions.
LSB 1981XS (1) 86
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