Bill Text: IA HF620 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act modifying provisions applicable to the construction, erection, maintenance, or operation of electric transmission lines, and including effective date and applicability provisions. (Formerly HSB 222)

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2015-06-04 - Referred to Government Oversight. H.J. 1135. [HF620 Detail]

Download: Iowa-2015-HF620-Introduced.html

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House File 620 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON
                                     GOVERNMENT OVERSIGHT

                                 (SUCCESSOR TO HSB 222)

                                      A BILL FOR

  1 An Act modifying provisions applicable to the construction,
  2    erection, maintenance, or operation of electric transmission
  3    lines, and including effective date and applicability
  4    provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 478.3, subsection 3, Code 2015, is
  1  2 amended to read as follows:
  1  3    3.  a.  For the purpose of this section chapter, the term
  1  4 "public" when used in relation to public interest, public use,
  1  5 or needs of the public shall not be interpreted to refer to and
  1  6  be limited to consumers located in this state.
  1  7    b.  Paragraph "a" shall not apply to a transmission line,
  1  8 wire, or cable that is capable of operating at an electric
  1  9 voltage of thirty=four and one=half kilovolts or greater
  1 10 and that primarily provides electricity through alternating
  1 11 current and is used by rate=regulated electric utilities,
  1 12 municipal electric utilities, rural electric cooperatives, or
  1 13 electric transmission owners to provide electric service to the
  1 14 aforementioned utilities or to the public for compensation.
  1 15    Sec. 2.  Section 478.4, Code 2015, is amended to read as
  1 16 follows:
  1 17    478.4  Franchise == hearing.
  1 18    1.  The utilities board shall consider the petition and
  1 19 any objections filed to it in the manner provided. It shall
  1 20 examine the proposed route or cause any engineer selected
  1 21 by it to do so. If a hearing is held on the petition it may
  1 22 hear testimony as may aid it in determining the propriety of
  1 23 granting the franchise. It may grant the franchise in whole or
  1 24 in part upon the terms, conditions, and restrictions, and with
  1 25 the modifications as to location and route as may seem to it
  1 26 just and proper. Before granting the franchise, the utilities
  1 27 board shall make a finding that the proposed line or lines are
  1 28 necessary to serve a public use and represents a reasonable
  1 29 relationship to an overall plan of transmitting electricity in
  1 30 the public interest. A franchise shall not become effective
  1 31 until the petitioners shall pay, or file an agreement to pay,
  1 32 all costs and expenses of the franchise proceeding, whether
  1 33 or not objections are filed, including costs of inspections
  1 34 or examinations of the route, hearing, salaries, publishing
  1 35 of notice, and any other expenses reasonably attributable to
  2  1 it. The funds received for the costs and the expenses of the
  2  2 franchise proceeding shall be remitted to the treasurer of
  2  3 state for deposit in the department of commerce revolving fund
  2  4 created in section 546.12 as provided in section 476.10.
  2  5    2.  a.  A finding of public use and public interest shall
  2  6 not be made in regard to a petition for a franchise if the
  2  7 petition sets forth that the exercise of the right of eminent
  2  8 domain will be used and if the petition primarily involves
  2  9 construction of a high=voltage direct current line and
  2 10 the petition does not provide for the erection of electric
  2 11 substations at intervals of less than fifty miles, which is
  2 12 necessary to accommodate both the purchase and sale to persons
  2 13 located in this state of electricity generated or transmitted
  2 14 by the franchisee.
  2 15    b.  Paragraph "a" shall not apply to a transmission line,
  2 16 wire, or cable that is capable of operating at an electric
  2 17 voltage of thirty=four and one=half kilovolts or greater
  2 18 and that primarily provides electricity through alternating
  2 19 current and is used by rate=regulated electric utilities,
  2 20 municipal electric utilities, rural electric cooperatives, or
  2 21 electric transmission owners to provide electric service to the
  2 22 aforementioned utilities or to the public for compensation.
  2 23    Sec. 3.  NEW SECTION.  478.34  Severability.
  2 24    If any provision of this chapter or its application to any
  2 25 person or circumstance is held invalid or otherwise rendered
  2 26 ineffective by any entity, the invalidity or ineffectiveness
  2 27 shall not affect other provisions or applications of this
  2 28 chapter that can be given effect without the invalid or
  2 29 ineffective provision or application, and to this end the
  2 30 provisions of this chapter are severable.
  2 31    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2 32 immediate importance, takes effect upon enactment.
  2 33    Sec. 5.  APPLICABILITY.  This Act is applicable to petitions
  2 34 for franchise filed on or after November 1, 2014, which have
  2 35 not been acted upon by the board on the effective date of this
  3  1 Act, and to petitions for franchise filed on or after the
  3  2 effective date of this Act.
  3  3                           EXPLANATION
  3  4 The inclusion of this explanation does not constitute agreement with
  3  5 the explanation's substance by the members of the general assembly.
  3  6    This bill modifies provisions applicable to the
  3  7 construction, erection, maintenance, or operation of electric
  3  8 transmission lines contained in Code chapter 478.
  3  9    In determining whether to grant a petition for a franchise to
  3 10 construct, erect, maintain, or operate an electric transmission
  3 11 line, the Iowa utilities board is required to find that, among
  3 12 other requirements, the proposed line or lines are necessary
  3 13 to serve a public use and represents a reasonable relationship
  3 14 to an overall plan of transmitting electricity in the public
  3 15 interest. The bill provides that a finding of public use and
  3 16 public interest shall not be made in the event a petition for
  3 17 a franchise primarily involves construction of a high=voltage
  3 18 direct current line and the petition does not provide for the
  3 19 erection of electric substations at intervals of less than 50
  3 20 miles, which is necessary to accommodate both the purchase and
  3 21 sale to persons located in Iowa of electricity generated or
  3 22 transmitted by the franchisee.
  3 23    Additionally, current Code section 478.3, specifying
  3 24 franchise petition requirements, provides that for the
  3 25 purposes of that Code section, the term "public" shall not be
  3 26 interpreted to be limited to consumers located in Iowa.  The
  3 27 bill modifies this provision to instead specify that the term
  3 28 "public" as used in Code chapter 478 in reference to public
  3 29 use, interest, and needs shall refer to and be limited to
  3 30 consumers located in this state.
  3 31    With reference to both the restriction against a finding
  3 32 of public use and public interest for the high=voltage
  3 33 direct current line and the limitation of the term "public"
  3 34 to consumers located in Iowa, the bill provides that these
  3 35 provisions shall not apply to a transmission line, wire, or
  4  1 cable that is capable of operating at an electric voltage
  4  2 of 34 and one=half kilovolts or greater that primarily
  4  3 provides electricity through alternating current and is
  4  4 used by rate=regulated electric utilities, municipal
  4  5 electric utilities, rural electric cooperatives, or electric
  4  6 transmission owners to provide electric service to the
  4  7 aforementioned utilities or to the public for compensation.
  4  8    Further, the bill contains a severability provision
  4  9 providing that if any provision of Code chapter 478 or its
  4 10 application to any person or circumstance is held invalid or
  4 11 otherwise rendered ineffective by any entity, the invalidity
  4 12 or ineffectiveness shall not affect other provisions or
  4 13 applications of the Code chapter that can be given effect
  4 14 without the invalid or ineffective provision or application,
  4 15 and to this end the provisions of the Code chapter are
  4 16 severable.
  4 17    The bill takes effect upon enactment and applies to
  4 18 petitions for franchise filed on or after November 1, 2014,
  4 19 which have not been acted upon by the board on the bill's
  4 20 effective date, and to petitions for franchise filed on or
  4 21 after the bill's effective date.
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