Bill Text: IA HSB179 | 2015-2016 | 86th General Assembly | Introduced


Bill Title: A study bill relating to electric transmission lines exceeding a specified length by prescribing location requirements, establishing fees, and including effective date and applicability provisions.

Spectrum: Unknown

Status: (Introduced - Dead) 2015-03-04 - 11:30AM; House Lounge Transportation. [HSB179 Detail]

Download: Iowa-2015-HSB179-Introduced.html
House Study Bill 179 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON BYRNES) A BILL FOR An Act relating to electric transmission lines exceeding a 1 specified length by prescribing location requirements, 2 establishing fees, and including effective date and 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1697YC (4) 86 rn/sc
H.F. _____ Section 1. Section 312.1, subsection 1, Code 2015, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . 0e. All the net proceeds of the franchise 3 fee under section 478.8. 4 Sec. 2. Section 478.3, subsection 1, paragraph c, Code 2015, 5 is amended to read as follows: 6 c. The starting points, routes, and termini of the proposed 7 lines, accompanied with a map or plat showing such details. If 8 a proposed line exceeds five hundred miles in length, the map 9 or plat shall document that the line shall be constructed near 10 and parallel to an existing highway right-of-way as provided in 11 section 478.18, subsection 3. 12 Sec. 3. Section 478.8, Code 2015, is amended to read as 13 follows: 14 478.8 Valuation of franchise —— fees . 15 1. No Except as provided in subsection 2, financial 16 consideration shall not be charged for such franchise. In 17 fixing the value for rate-making purposes of the property of 18 any person, company, or corporation owning it or assigned the 19 franchise or operating under it the franchise, no account shall 20 be taken of, and no increased value shall be allowed for, 21 any such franchise, except that the reasonable cost to the 22 petitioners of obtaining said the franchise may be included in 23 the cost of constructing said line. 24 2. a. An applicant granted a franchise pursuant to this 25 chapter to construct, maintain, or operate a transmission 26 line that exceeds five hundred miles in length shall be 27 charged an initial fee of forty-five million dollars on the 28 date the franchise is granted, and an annual fee of three 29 million eight hundred thousand dollars thereafter for each 30 year the franchise is in existence. The annual fee shall 31 apply equally to assignees or operators as well as to original 32 owners. Fees paid pursuant to this subsection shall not be 33 taken into account in fixing the value for rate-making purposes 34 under subsection 1 of the property of any person, company, or 35 -1- LSB 1697YC (4) 86 rn/sc 1/ 3
H.F. _____ corporation owning, assigned, or operating the franchise. 1 b. Fees collected pursuant to this subsection shall be 2 deposited in the road use tax fund created in section 312.1. 3 Sec. 4. Section 478.13, Code 2015, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 6. An extension of an existing franchise 6 for construction, maintenance, or operation of a transmission 7 line that exceeds five hundred miles shall be subject to the 8 initial and annual fees imposed pursuant to section 478.8 and 9 to the construction location requirements contained in section 10 478.18, subsection 3. 11 Sec. 5. Section 478.18, Code 2015, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 3. Notwithstanding any other provision to 14 the contrary, a transmission line that exceeds five hundred 15 miles in length shall be constructed near and parallel to 16 an existing highway right-of-way. For the purposes of this 17 subsection, “highway right-of-way” means the same as defined in 18 section 318.1. 19 Sec. 6. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 20 immediate importance, takes effect upon enactment. 21 Sec. 7. RETROACTIVE APPLICABILITY. This Act applies 22 retroactively to petitions for a franchise or extension of a 23 franchise filed on or after November 1, 2014. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to electric transmission lines exceeding 28 a specified length by prescribing location requirements and 29 establishing fees. 30 Currently, Code section 478.8 provides that financial 31 consideration shall not be charged for obtaining a franchise to 32 construct, maintain, or operate an electric transmission line. 33 The bill creates an exception to this provision by imposing 34 an initial fee of $45 million and an annual fee thereafter of 35 -2- LSB 1697YC (4) 86 rn/sc 2/ 3
H.F. _____ $3.8 million for a franchise for construction, maintenance, or 1 operation of a transmission line exceeding 500 miles in length. 2 The bill provides that the annual fee requirement shall apply 3 equally to assignees or operators of the franchise as well as 4 to original owners. The bill also provides that in fixing the 5 value for rate-making purposes of the property of any person, 6 company, or corporation owning or operating the franchise, the 7 initial or annual fees shall not be taken into account. The 8 bill directs that the fees be deposited in the general fund of 9 the state and credited to the road use tax fund. 10 Additionally, the bill provides that a transmission line 11 exceeding 500 miles in length shall be constructed near 12 and parallel to an existing highway right-of-way. The bill 13 references the definition of “highway right-of-way” contained 14 in Code section 318.1 as meaning the total area of land, 15 whether reserved by public ownership or easement, that is 16 reserved for the operation and maintenance of a legally 17 established public roadway deemed to consist of two portions, a 18 central traveled way including the shoulders and that remainder 19 on both sides of the road, between the outside shoulder edges 20 and the outer boundaries of the right-of-way. 21 The bill provides that the initial and annual fee and 22 location requirements apply to extensions of an existing 23 franchise for the construction, maintenance, or operation of a 24 transmission line that exceeds 500 miles in length. 25 The bill takes effect upon enactment and applies 26 retroactively to petitions for a franchise or extension of a 27 franchise filed on or after November 1, 2014. 28 -3- LSB 1697YC (4) 86 rn/sc 3/ 3
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