Bill Text: IA SF372 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act establishing an incentive program applicable to specified wind energy production facilities. (Formerly SSB 1234.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [SF372 Detail]
Download: Iowa-2013-SF372-Introduced.html
Senate
File
372
-
Introduced
SENATE
FILE
372
BY
COMMITTEE
ON
AGRICULTURE
(SUCCESSOR
TO
SSB
1234)
A
BILL
FOR
An
Act
establishing
an
incentive
program
applicable
to
1
specified
wind
energy
production
facilities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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372
Section
1.
NEW
SECTION
.
476.43A
Wind
energy
incentive
1
program.
2
1.
A
wind
energy
production
facility
with
a
nameplate
3
generating
capacity
of
less
than
or
equal
to
twenty
megawatts
4
which
seeks
to
enter
into
an
interconnection
and
power
sales
5
agreement
with
an
electric
utility
may
submit
an
application
6
for
approval
to
the
board.
The
board
shall
develop
an
7
application
form
and
establish
approval
criteria
by
rule.
8
2.
a.
Eligibility
for
the
program
shall
be
contingent
upon
9
the
following:
10
(1)
Constructing
the
facility
on
agricultural
land
in
this
11
state
as
defined
in
section
9H.1.
12
(2)
Having
applied
for
or
obtained
the
necessary
financing
13
to
cover
facility
construction
and
operation
costs.
14
(3)
Completing
a
standard
interconnection
request
form
15
established
by
the
board
by
rule.
16
b.
Notwithstanding
the
ownership
or
maximum
purchase
17
requirements
of
section
476.44,
an
electric
utility
shall
18
interconnect
with
a
facility
which
is
approved
by
the
board
19
for
participation
in
the
program
and
shall
purchase
energy
20
from
that
facility
at
the
rates
approved
in
the
standard
21
offer
contract
filed
pursuant
to
subsection
3
with
the
board.
22
However,
an
electric
utility
shall
not
be
required
to
purchase
23
an
amount
of
energy
from
new
program
participants
in
a
given
24
year
which
exceeds
fifty
percent
of
the
electric
utility’s
25
retail
sales
growth
during
the
previous
year.
26
3.
a.
The
board
shall
develop
a
standard
offer
contract
27
form
to
facilitate
interconnection
between
an
electric
utility
28
and
a
program
participant.
The
form
shall
be
subject
to
29
biannual
review
and
periodic
adjustment
by
the
board
with
30
respect
to
new
program
participants.
The
board
shall
require
31
all
electric
utilities
to
file
with
the
board
standard
offer
32
contracts
consistent
with
the
form,
subject
to
modification
33
and
approval
by
the
board.
Electric
utilities
shall
make
34
the
contracts
available
to
any
approved
program
participant.
35
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Standard
offer
contracts
shall
continue
in
effect
for
a
1
ten-year
period
or
until
construction
and
financing
costs
of
2
the
facility
have
been
recovered,
whichever
is
earlier,
may
be
3
renewed,
and
shall
be
subject
to
termination
provisions
for
4
failure
to
perform,
to
be
established
by
the
board
by
rule.
5
b.
The
standard
offer
contracts
shall
be
calculated
on
6
a
kilowatt-hour
basis,
and
shall
be
based
on
each
utility’s
7
cost,
inclusive
of
its
required
rate
of
return,
for
the
new
8
development
of
wind
technology.
9
c.
Until
the
owner
of
the
facility
has
recovered
all
10
construction
and
financing
costs
incurred
in
construction
11
of
the
facility
through
electricity
sales
to
the
utility,
12
electricity
generated
by
the
facility
shall
be
fully
13
transmitted
to
the
utility
and
not
available
to
the
owner
of
14
the
facility
for
utilization
on-site.
15
4.
Standard
offer
contracts
shall
be
in
lieu
of
rates
16
otherwise
determined
by
the
board
pursuant
to
section
476.43.
17
An
unsuccessful
applicant,
or
a
wind
energy
production
facility
18
with
larger
than
twenty
megawatts
of
nameplate
generating
19
capacity,
shall
be
governed
by
the
rates
established
in
section
20
476.43.
21
5.
The
board
shall
submit
a
report
to
the
general
assembly
22
by
January
1
annually
regarding
program
participation
levels
23
and
program
results.
24
EXPLANATION
25
This
bill
establishes
a
wind
energy
incentive
program
26
applicable
to
wind
energy
production
facilities
approved
for
27
participation
in
the
program.
28
The
bill
provides
that
a
wind
energy
production
facility
29
with
a
nameplate
generating
capacity
of
less
than
or
equal
30
to
20
megawatts
which
seeks
to
enter
into
an
interconnection
31
and
power
sales
agreement
with
an
electric
utility
may
submit
32
an
application
for
approval
to
the
Iowa
utilities
board.
To
33
be
eligible
to
apply
for
the
program,
a
facility
must
be
34
constructed
on
land
suitable
for
use
in
farming,
have
applied
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for
or
obtained
the
necessary
financing
to
cover
facility
1
construction
and
operation
costs,
and
complete
a
standard
2
interconnection
request
form
established
by
the
board
by
rule.
3
The
bill
provides
that
notwithstanding
the
ownership
or
4
maximum
purchase
requirements
of
Code
section
476.44,
an
5
electric
utility
shall
be
required
to
interconnect
with
a
6
facility
approved
by
the
board
for
the
program,
but
shall
not
7
be
required
to
purchase
an
amount
of
energy
from
new
program
8
participants
in
a
given
year
which
exceeds
50
percent
of
its
9
retail
sales
growth
during
the
previous
year.
10
The
bill
directs
the
board
to
develop
a
standard
offer
11
contract
form
to
facilitate
interconnection
between
an
electric
12
utility
and
a
program
participant,
which
shall
be
subject
to
13
biannual
review
and
periodic
adjustment
by
the
board
with
14
respect
to
new
program
participants.
All
electric
utilities
15
shall
file
with
the
board
standard
offer
contracts
consistent
16
with
this
form,
subject
to
modification
and
board
approval,
and
17
shall
make
these
contracts
available
to
any
approved
program
18
participant.
The
bill
provides
that
standard
offer
contracts
19
shall
continue
in
effect
for
the
earlier
of
10
years,
or
the
20
date
by
which
the
facility
owner
has
recovered
construction
and
21
financing
costs,
are
renewable,
and
are
subject
to
termination
22
provisions
for
failure
to
perform
to
be
established
by
the
23
board
by
rule.
24
The
bill
provides
that
purchases
of
electricity
under
the
25
standard
offer
contracts
shall
be
calculated
on
a
kilowatt-hour
26
basis,
and
shall
be
based
on
each
utility’s
cost,
inclusive
of
27
its
required
rate
of
return,
for
the
new
development
of
wind
28
technology.
Until
the
owner
of
the
facility
has
recovered
all
29
construction
and
financing
costs
incurred
in
construction
of
30
the
facility,
the
bill
provides
that
all
electricity
generated
31
by
the
facility
shall
be
fully
transmitted
to
the
utility
and
32
not
available
to
the
owner
of
the
facility
for
utilization
33
on-site.
34
The
bill
states
that
standard
offer
contracts
shall
be
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372
in
lieu
of
alternate
and
renewable
energy
rates
otherwise
1
determined
by
the
board
pursuant
to
Code
section
476.43,
and
2
that
an
unsuccessful
applicant,
or
a
wind
energy
production
3
facility
with
larger
than
20
megawatts
of
nameplate
generating
4
capacity,
shall
be
governed
by
the
Code
section
476.43
rates.
5
The
bill
requires
the
board
to
submit
a
report
to
the
general
6
assembly
by
January
1
annually
regarding
program
participation
7
levels
and
results.
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