Energy Topics Dominate Utility Issues in '07 Legislature

The 2007 Legislative Session ended in the early morning hours on Sunday, April 29. For energy utility members, the session was a very active one. A study group of the House Commerce Committee, which at times included members of the Senate, conducted numerous energy related hearings throughout the session. Bob Haug, IAMU Executive Director, presented testimony related to municipal utility energy efficiency efforts and the Iowa Stored Energy Park Glenn Cannon, Waverly Light & Power General Manager, discussed Waverly’s green building and energy efficiency efforts.

Topping the energy issues was the Governor’s proposal to create a $100 million Iowa Power Fund. HF 918 and HF 927 create and fund the Governor’s Office of Energy Independence, the Iowa Power Fund & Board, and a Due Diligence Board. It requires the new office to develop an Energy Independence plan. The fund goals are to increase production, development and use of biofuels and other renewable energies, reduce greenhouse gas emissions and implement practices and technologies to reduce the use of fossil fuels. Despite some attempts to impose energy efficiency mandates on municipal utilities and rural electric cooperatives, that did not happen. HF 498 – the original power fund bill – would have required that municipal utilities and Rural Electric Cooperatives (RECs) be treated the same as Investor Owned Utilities (IOUs) regarding filing and review of energy efficiency plans with the Iowa Utilities Board (IUB). HF 918 requires that municipal utilities, along with other utilities, participate in a study of energy efficiency plans and programs and report the results to the General Assembly by January 1, 2008. In addition to the IUB efforts, the Senate passed a resolution to establish an interim study committee to examine energy efficiency programs under IUB and develop recommendations on how to improve and increase programs effectiveness.

SF 485 requires the Iowa Department of Natural Resources (IDNR) to establish a method for collecting data from greenhouse gas producers and coordinating a greenhouse gas inventory with the registry. The bill also creates an Iowa Climate Change Advisory Council with 23 voting members and four nonvoting ex officio members. Municipal utilities are included as a voting member. The Council is to develop multiple scenarios designed to reduce statewide greenhouse gas emissions with the first proposal to be submitted to the legislature by January 1, 2008. An energy related incentive was passed in HF 773, which requires the IDNR to establish an energy city designation program to encourage cities to develop and implement innovative energy efficiency initiatives.

For the first time in years, municipal telecommunications utilities were not playing defense at the Capitol. However, a bill that would require the issuance of statewide cable franchise by the IUB passed without a municipal utility predatory pricing amendment. The amendment would have eliminated the IUB’s role in enforcing predatory pricing and created a new standard prohibiting a cable or telecom provider from selling service or bundle of services at a price that is more than 200% of the lowest price that the provider charges for a functionally equivalent service or bundle of services to another customer in the state.

Water quality initiatives were addressed in an amendment that allows cities, public water supply utilities, and county conservation boards to be eligible for Watershed Improvement Review Board (WIRB) grants, requires the Board to consider innovative water quality projects, requires the watershed quality protection task force to report to the Legislature by January 1, 2008 rather than July 1, 2008, and directs the IDNR and Iowa Department of Agriculture and Land Stewardship (IDALS) to work cooperatively to maximize federal funding for the $20 million Conservation Reserve Enhancement Program (CREP II) that was added to the Ag and Natural Resources Appropriations bill. IAMU expects increased activity in the area of water quality during the 2008 legislative session. A bill which eliminates the landlord notice requirement for water utilities was passed and a bill which would have increased water fees was stopped.

Other bills relating to city issues passed late in the session. Bills to establish a statewide licensure for electricians and plumbers passed. Municipal utility employees are exempt from any requirements of the new licensing provisions, but only while acting within the scope of their employment.

An issue that arose during the 2006 legislative session was addressed this year by removing some of the more restrictive publication requirements on 28Es. The bill provides that 28Es that are contractual in nature and that do not create a joint board that conducts meetings are exempted from the publication requirements. 28Es that create joint boards and that have budgets in excess of $100,000 must still publish proceedings in the newspaper. However, the bill allows for publication of a summary of the proceedings rather than the entire minutes. The summary must include the date, time, and place the meeting was held, members present, and actions taken at meeting. The statute was changed to refer to submission for publication rather than publication and to extend the time period for submission from seven days to 20 days. 28E entities that create separate boards and that have budgets of under $100,000 are required to file a summary of proceedings with the county recorder. The filing can be done electronically and is to be done without charge. The county recorder is required to provide the public with access to the original filing of the 28E agreement. The bill strikes references to "administrator" in open meetings/records requirements.

The bill eliminates the requirement to file 28E agreements with the county recorder and modifies an existing requirement that 28E agreements be filed with the Secretary of State’s Office by requiring electronic filing. It requires that all 28Es that are subject to publication requirements (only those that create a joint board) file an initial electronic report with the Secretary of State’s Office identifying the name of the entity, board members, whether exempt from publication, email address and other information required by Secretary of State.

IAMU sought legislation this session to allow a city council to schedule utility elections, (e.g., establishing or disposing of a city utility, or establishing a board of trustees) at special elections. A recent opinion from the attorney general had placed that option in question. The bill was amended to require 60 days notice of an election to acquire assets of a current gas or electric utility. This amendment was included in SF 601.