Bill Text: IA SSB1158 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to diesel fuel priority for a public utility.
Spectrum: Committee Bill
Status: (Introduced) 2023-02-28 - Subcommittee recommends amendment and passage. []. [SSB1158 Detail]
Download: Iowa-2023-SSB1158-Introduced.html
Senate
Study
Bill
1158
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
BROWN)
A
BILL
FOR
An
Act
relating
to
diesel
fuel
priority
for
a
public
utility.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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Section
1.
NEW
SECTION
.
476.57
Diesel
fuel
priority
——
1
public
utilities.
2
1.
Where
a
regional
transmission
organization
declares
3
an
energy
or
capacity
emergency,
or
otherwise
requires
a
4
public
utility
furnishing
electricity
to
commit
or
operate
a
5
diesel-fueled
electric
generating
unit,
the
public
utility
may
6
request
the
board
to
take
the
following
actions:
7
a.
Direct
the
department
of
natural
resources
to
suspend
8
any
requirements
of
567
IAC
23.1(4),
emission
standards
for
9
hazardous
air
pollutants
for
source
categories,
as
applicable
10
to
a
diesel-fueled
electric
generating
unit
to
the
extent
the
11
requirements
prevent
diesel-fueled
electric
generating
units
12
from
being
classified
as
emergency
units.
13
b.
Direct
the
department
of
natural
resources
to
suspend
14
any
requirements
of
567
IAC
23.1(4),
emission
standards
for
15
hazardous
air
pollutants
for
source
categories,
as
applicable
16
to
a
diesel-fueled
electric
generating
unit
to
the
extent
the
17
requirements
require
a
public
utility
to
count
the
number
18
of
operational
hours
during
emergency
conditions
toward
the
19
maximum
number
of
hours
for
testing
purposes.
20
c.
Issue
a
priority
service
order
to
any
diesel
fuel
seller
21
supplying
diesel
fuel
to
the
public
utility,
as
follows:
22
(1)
The
request
from
the
public
utility
shall
specify
the
23
amount
of
fuel
necessary
to
continue
furnishing
electricity
24
during
the
emergency
conditions.
25
(2)
Upon
receiving
the
request
for
priority
service,
26
the
board
shall
verify
the
existence
of
the
energy
or
27
capacity-related
emergency
conditions
and
determine
whether
the
28
amount
of
fuel
requested
is
reasonable.
29
(3)
Upon
verification
of
the
emergency
conditions,
the
30
board
shall
issue
an
order
directing
the
diesel
fuel
supplier
31
to
grant
the
public
utility
a
right
of
first
refusal
to
acquire
32
diesel
fuel
at
the
spot
market
price.
33
2.
A
diesel
fuel
supplier
that
does
not
comply
with
an
order
34
issued
pursuant
to
subsection
1,
paragraph
“c”
,
is
subject
to
35
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penalties
under
section
476.51.
1
3.
The
board
and
the
department
of
natural
resources
shall
2
coordinate
with
a
public
utility
making
a
request
under
this
3
section
in
order
to
identify
the
appropriate
regulations
and
4
requirements.
5
4.
For
purposes
of
this
section,
“spot
market”
means
a
6
financial
market
in
which
financial
instruments
or
commodities
7
are
traded
for
immediate
delivery.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
relates
to
diesel
fuel
priority
for
a
public
12
utility.
13
The
bill
requires
diesel
fuel
sellers
in
Iowa
to
give
14
priority
service
to
a
public
utility
operating
a
diesel
15
electric
generation
unit
in
response
to
a
directive
from
the
16
regional
transmission
operator
of
the
public
utility
during
a
17
declared
energy
or
capacity
emergency.
The
public
utility
may
18
request
for
the
Iowa
utilities
board
(board)
to
take
specified
19
actions,
including
directing
the
department
of
natural
20
resources
to
suspend
requirements
in
567
Iowa
administrative
21
code
23.1(4)
relating
to
emission
standards
for
hazardous
air
22
pollutants
to
prevent
diesel-fueled
electric
generating
units
23
from
being
classified
as
emergency
units
or
count
the
hours
24
during
emergency
conditions
toward
the
maximum
number
of
hours
25
for
testing
purposes.
26
The
bill
allows
a
public
utility
to
request
the
board
to
27
issue
a
priority
service
order
to
any
diesel
fuel
seller
28
supplying
diesel
fuel
to
the
public
utility.
The
public
29
utility
shall
specify
the
amount
of
fuel
necessary
to
continue
30
furnishing
electricity
during
the
emergency
conditions.
The
31
board,
after
receiving
the
public
utility’s
request
for
32
priority
service,
shall
verify
the
existence
of
the
energy
or
33
capacity-related
emergency
conditions
and
determine
whether
34
the
amount
of
fuel
requested
is
reasonable,
and
issue
an
35
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order
directing
the
diesel
fuel
supplier
to
grant
the
public
1
utility
a
right
of
first
refusal
to
acquire
diesel
fuel
at
the
2
spot
market
price.
The
bill
defines
“spot
market”
to
mean
a
3
financial
market
where
financial
instruments
or
commodities
are
4
traded
for
immediate
delivery.
5
The
bill
requires
the
board
and
the
department
of
natural
6
resources
to
coordinate
with
a
public
utility
to
identify
the
7
appropriate
regulations
and
requirements.
8
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1633XC
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3
