2005 Legislation
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HOUSE BILL NO. 30 – Energy Resources Authority Act


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H0030.................................by ENVIRONMENT, ENERGY AND TECHNOLOGY
ENERGY RESOURCES AUTHORITY ACT - Adds to existing law to create an Idaho
Energy Resources Authority as an independent body; and to authorize the
Authority to issue revenue bonds for construction of transmission
facilities, for energy conservation measures and alternative energy
01/24    House intro - 1st rdg - to printing
01/25    Rpt prt - to Env

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 30
  1                                        AN ACT
 29    Be It Enacted by the Legislature of the State of Idaho:
 30        SECTION  1.  That Title 67, Idaho Code, be, and the same is hereby amended
 31    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 32    ter 89, Title 67, Idaho Code, and to read as follows:
 33                                      CHAPTER 89
 34                         IDAHO ENERGY RESOURCES AUTHORITY ACT
 35        67-8901.  SHORT TITLE. This act may be referred to and cited as the "Idaho
 36    Energy Resources Authority Act."
 38    (1) It is hereby determined and declared that:
 39        (a)  Industrial, irrigation, commercial and residential consumers  in  the
 40        state of Idaho receive electric service from various investor-owned, coop-
 41        erative and municipal utilities and the ability of these utilities to pro-
  1        vide reliable and economic electric services at stable prices is essential
  2        to  the  economy and the economic development of the state of Idaho and to
  3        the health, safety and welfare of its people;
  4        (b)  The regional interconnection of electric utilities causes events and
  5        conditions in other western states to have a  significant  impact  of  the
  6        operations of utilities in the state of Idaho and the restructuring of the
  7        electric  industry  in recent years by the federal government and in other
  8        states has exposed all utilities in Idaho, and  the  consumers  served  by
  9        them,  to  volatile  market prices, reliability concerns and other adverse
 10        conditions;
 11        (c)  It is in the best interest of the state of Idaho and its people  that
 12        sufficient and reliable electric generation, transmission and distribution
 13        resources are developed and made available at cost-based rates in order to
 14        enable  these  utilities  to meet existing and future demands for electric
 15        services, to provide adequate reserves and to promote reliability  at  the
 16        most stable rates practicable;
 17        (d)  It  is  in  the best interest of the state of Idaho and its people to
 18        encourage and promote the development of renewable  energy  resources  and
 19        energy  conservation  and efficiency projects in order to develop sustain-
 20        able sources of energy supply, reduce inefficiencies in the use  of  elec-
 21        tric  energy  and  enhance the long-term stability of the energy resources
 22        and requirements of the state;
 23        (e)  The electric utility and energy industries are and will  continue  to
 24        be  capital-intensive  industries  and  the availability of cost-effective
 25        financing to investor-owned,  cooperative  and  municipal  utilities  will
 26        enhance  the  ability  of  these utilities to provide and promote economic
 27        electric services to consumers in the state;
 28        (f)  Coordination, cooperation and joint ventures between and  among  such
 29        utilities  with  one  another  and with the private, cooperative, federal,
 30        state and municipal utilities and  agencies  that  provide  wholesale  and
 31        retail electric services in the western states will promote regional elec-
 32        tric reliability and stability and will provide economies of scale; and
 33        (g)  It  is  the  intent  of  the  legislature  to create the Idaho energy
 34        resources authority to promote the development and financing of facilities
 35        for the benefit of participating utilities and to accomplish the  purposes
 36        stated  above,  and to authorize the authority to exercise all such powers
 37        as are necessary to enable it to achieve such purposes and to thereby pro-
 38        mote and protect the economy of the state of Idaho and the health,  safety
 39        and welfare of its people.
 40        (2)  This  chapter  shall  be liberally construed to accomplish the inten-
 41    tions set out in this section.
 42        67-8903.  DEFINITIONS. When used in  this  chapter,  the  following  terms
 43    shall have the following meanings:
 44        (1)  "Authority" means the Idaho energy resources authority created pursu-
 45    ant to section 67-8904, Idaho Code.
 46        (2)  "Board" means the board of directors of the authority.
 47        (3)  "Bonds"  means any bonds, notes, certificates or other obligations or
 48    evidences of indebtedness issued by the authority.
 49        (4)  "Commission" means the Idaho public utilities commission created pur-
 50    suant to section 61-201, Idaho Code.
 51        (5)  "Electric cooperative" means a cooperative corporation or association
 52    which is:
 53        (a)  Organized under the provisions of section 501(c)(12) or 1381  of  the
 54        Internal Revenue Code;
  1        (b)  Is  an  Idaho  nonprofit corporation pursuant to chapter 3, title 30,
  2        Idaho Code; and
  3        (c)  Is an operating entity or successor entity thereof which owns facili-
  4        ties and provides electric service to customers in Idaho as of the  effec-
  5        tive date of this chapter.
  6        (6)  "Energy  conservation  measures"  means  any  property,  improvement,
  7    equipment, system, program or undertaking designed to promote the conservation
  8    and  efficient  utilization  of electric energy by one (1) or more industrial,
  9    agricultural, commercial or residential consumers.
 10        (7)  "Facility" means:
 11        (a)  Any facility necessary, used or useful in connection with the genera-
 12        tion, transmission and distribution of electric power and energy,
 13        (b)  Any energy conservation measure, and
 14        (c)  Any renewable energy generation project,
 15    in each case including, but not limited to, all real  and  personal  property,
 16    fuel  and  water  supplies  and  transportation  facilities, pollution control
 17    facilities and all equipment and improvements necessary or desirable  in  con-
 18    nection with a facility. "Facility" shall include facilities owned in whole or
 19    in  part by the authority or a participating utility, including undivided own-
 20    ership interests in facilities, leasehold interests in  facilities  and  other
 21    estates.
 22        (8)  "Independent  power producer" means any public or private corporation
 23    which is not itself a participating utility, but which may be an affiliate  of
 24    a participating utility, that develops any renewable energy generation project
 25    undertaken by the authority pursuant to this chapter.
 26        (9)  "Participating  utility" means, with respect to any facilities under-
 27    taken by the authority pursuant to this chapter, any public or private  corpo-
 28    ration,  electric cooperative or other cooperative corporation or association,
 29    municipal corporation, political subdivision of this state or  another  state,
 30    state or federal agency, joint operating entity or other entity that:
 31        (a)  Owns  and  operates an electric utility system that provides electric
 32        services to consumers of electricity located in an existing  service  area
 33        within the boundaries of this state;
 34        (b)  Provides  electric  generation,  power  supply,  transmission  and/or
 35        ancillary and related services at wholesale to one (1) or more participat-
 36        ing utilities described in paragraph (a) of this subsection; or
 37        (c)  Is organized or operates as a regional transmission organization cov-
 38        ering  all  or  any  part  of the state of Idaho and one (1) or more other
 39        states.
 40        (10) "Renewable energy" means a source of energy that occurs naturally, is
 41    regenerated naturally or uses as a fuel source a waste  product  or  byproduct
 42    from  a  manufacturing process, including, but not limited to, open or closed-
 43    loop biomass,  fuel  cells,  geothermal  energy,  waste  heat,  solar  energy,
 44    waterpower and wind.
 45        (11) "Renewable  energy  generation  project" means an electric generating
 46    facility or system that uses renewable energy as its primary source of  energy
 47    to generate electricity.
 48        (12) "Revenues"  means  all  receipts, purchase payments, loan repayments,
 49    lease payments, rents, fees and charges, and  all  other  income  or  receipts
 50    derived by the authority from a participating utility.
 51        67-8904.  CREATION  OF  IDAHO  ENERGY RESOURCES AUTHORITY. There is hereby
 52    created and established an independent public body politic and corporate to be
 53    known as the "Idaho Energy Resources Authority." The  authority  is  a  public
 54    instrumentality  of the state and its exercise of the powers conferred by this
  1    chapter is and shall be deemed to be the performance of essential public func-
  2    tions and purposes.
  4    AND REMOVAL. (1) The powers of the authority shall be vested  in  a  board  of
  5    seven  (7) directors to be appointed by the governor and confirmed by the sen-
  6    ate.
  7        (2)  Not more than four (4) of the directors shall be of the same  politi-
  8    cal  party.  In  making  appointments,  the governor shall endeavor to appoint
  9    individuals with direct professional experience and demonstrated knowledge  in
 10    the  electric  utility  industry.  In addition to representatives of investor-
 11    owned, electric cooperative or municipal  utilities,  the  governor  may  also
 12    appoint  individuals  with expertise in fields related to the functions of the
 13    authority such as engineering, banking, finance, economics and law.
 14        (3)  The directors of the authority first appointed by the governor  shall
 15    serve  for terms to be designated by the governor expiring on June 30, as fol-
 16    lows: two (2) in 2006, one (1) in 2007, two (2) in 2008 and one (1) in each of
 17    2009 and 2010. After the expiration of these initial  terms,  directors  shall
 18    serve for five (5) year terms. Each director shall hold office for the term of
 19    his  appointment  and until his successor shall have been appointed and quali-
 20    fied. Any director shall be eligible for reappointment  but  no  director  may
 21    serve more than two (2) consecutive terms.
 22        (4)  The  governor  shall  fill any vacancy for the remainder of any unex-
 23    pired term.
 24        (5)  Any director may be removed by the governor for malfeasance or  will-
 25    ful neglect of duty or other cause.
 26        67-8906.  QUORUM -- MODE OF ACTION -- COMPENSATION. (1) Four (4) directors
 27    of the authority shall constitute a quorum for the purpose of conducting busi-
 28    ness and exercising its powers.
 29        (2)  Action  may be taken by the authority upon the affirmative vote of at
 30    least four (4) directors. No vacancy on the board shall impair the right of  a
 31    quorum to exercise all the rights and perform all the duties of the authority.
 32        (3)  Notice  of  meetings  shall  be given as provided in sections 67-2341
 33    through 67-2347, Idaho Code, and the bylaws of the authority.
 34        (4)  The board may hold any of its meetings by  telephone,  teleconference
 35    or other electronic means, as and to the extent provided in its bylaws.
 36        (5)  The board shall act by resolution or order which shall be recorded in
 37    its official minutes but need not be published or posted.
 38        (6)  Directors  shall  be  compensated for services as provided by section
 39    59-509(o), Idaho Code.
 42    INTEREST. (1) A director designated by the governor shall call and convene the
 43    initial  organizational meeting of the authority and shall serve as its chair-
 44    man pro tempore. At such meeting, appropriate bylaws shall  be  presented  for
 45    adoption.  The  bylaws may provide for the election or appointment of officers
 46    and the delegation of certain powers and duties and such other matters as  the
 47    authority  deems  proper.  At  such  meeting and annually thereafter the board
 48    shall elect one (1) of the directors as chairman and one (1) as vice chairman.
 49        (2)  The board shall appoint a secretary and a treasurer and  may  appoint
 50    one  (1)  or  more assistant secretaries and assistant treasurers, any of whom
 51    may be, but not required to be, a director of the  authority,  and  who  shall
 52    serve  at  the pleasure of the board.  A single individual may be appointed as
  1    secretary-treasurer. They shall receive such compensation for  their  services
  2    as shall be fixed by the board. The secretary or an assistant secretary desig-
  3    nated  by  the  board  shall keep a record of the proceedings of the board and
  4    shall be custodian of all books, documents, and papers filed with the  author-
  5    ity,  the minute books or journal thereof and its official seal. The secretary
  6    or any assistant secretary shall cause necessary copies to be made of all min-
  7    utes and other records and documents of the authority and  may  give  certifi-
  8    cates  under the official seal of the authority to the effect that such copies
  9    are true copies and all persons dealing with the authority may  rely  on  such
 10    certificates.  The  treasurer shall have custody of and responsibility for the
 11    safekeeping of the funds and investments of the authority.
 12        (3)  The board may employ an executive officer and one (1) or  more  addi-
 13    tional  employees  as  it  shall deem necessary and expedient to carry out its
 14    purposes. The executive officer may be, but is not required to be, a  director
 15    of  the  authority.  The  executive officer shall serve at the pleasure of the
 16    board and shall receive such compensation as shall be fixed by the board.
 17        (4)  The board may delegate by resolution such powers and duties as it may
 18    deem proper to one (1) or more of its directors or to its secretary, executive
 19    officer or any assistant officers.
 20        (5)  The secretary, the treasurer and any executive officer shall  execute
 21    a  surety bond in the penal sum of one hundred thousand dollars ($100,000) or,
 22    in lieu thereof, the chairman of the authority shall execute  a  blanket  bond
 23    covering  each  director,  the secretary, the treasurer, the executive officer
 24    and any other employees or officers of the authority, each surety bond  to  be
 25    conditioned upon the faithful performance of the duties of the office or offi-
 26    ces  covered,  to  be  executed by a surety authorized to transact business in
 27    this state as surety. The cost of each such bond shall be paid by the  author-
 28    ity.
 29        (6)  Notwithstanding  any  other law to the contrary, it shall not consti-
 30    tute a conflict of interest for a trustee, director, officer, or  employee  of
 31    any  electric corporation, electric utility, financial institution, investment
 32    banking firm, brokerage firm, commercial bank or trust  company,  architecture
 33    firm,  insurance company, or any other firm, person or corporation to serve as
 34    a director of the authority, provided  such  trustee,  director,  officer,  or
 35    employee  shall abstain from deliberation, action and vote by the authority in
 36    each instance where the business affiliation of any  such  trustee,  director,
 37    officer, or employee is involved.
 38        67-8908.  POWERS. (1) The authority shall have the following powers, which
 39    are  hereby  declared to be necessary to enable the authority to carry out and
 40    effectuate the purposes and provisions of  this  chapter,  together  with  all
 41    powers incidental thereto or necessary for the performance thereof:
 42        (a)  To have perpetual succession as a body politic and corporate;
 43        (b)  To  adopt bylaws for the regulation of its affairs and the conduct of
 44        its business;
 45        (c)  To sue and be sued and to prosecute and defend, at law or in  equity,
 46        in any court having jurisdiction of the subject matter and of the parties;
 47        (d)  To  have  and to use a corporate seal and to alter the same at pleas-
 48        ure;
 49        (e)  To maintain an office at such place or places as it may designate;
 50        (f)  To make and execute contracts and all other instruments necessary  or
 51        convenient  for  the exercise of its powers and functions under this chap-
 52        ter;
 53        (g)  To acquire,  whether  by  purchase,  gift,  grant,  bequest,  devise,
 54        exchange,  eminent  domain or otherwise, own, hold, improve, lease, trans-
  1        fer, assign, pledge and dispose of, any real or personal property  or  any
  2        interest  therein  necessary or convenient in connection with any facility
  3        or its purposes under this chapter;
  4        (h)  To acquire, construct, reconstruct, renovate, improve, replace, main-
  5        tain, repair, manage, operate, lease as lessee or lessor, and regulate any
  6        facility; to enter into contracts for any and all of such purposes and for
  7        the acquisition and management of fuel supplies; to enter  into  contracts
  8        and  agreements  to  manage risks associated with the purchase and sale of
  9        energy and energy commodities; and to designate one (1) or  more  partici-
 10        pating  utilities  as agent or agents of the authority with respect to the
 11        foregoing;
 12        (i)  To sell, lease or otherwise provide by contract to one  (1)  or  more
 13        participating utilities the services, output or product provided by any or
 14        all of the facilities undertaken by the authority upon such terms and con-
 15        ditions as the authority shall deem proper, and to establish, charge, col-
 16        lect  and revise from time to time such rents, rates, fees and charges for
 17        such services, output or product as provided for in this chapter;
 18        (j)  To borrow money and to issue bonds for any of the purposes  described
 19        in  this chapter, to issue refunding bonds and to enter into contracts and
 20        agreements determined by the authority to be  necessary  or  desirable  to
 21        manage its debt service and interest costs;
 22        (k)  To  establish  rules and regulations for the use of facilities and to
 23        designate a participating utility as its agent,  to  establish  rules  and
 24        regulations  for  the use of the facilities undertaken or operated by such
 25        participating utility;
 26        (l)  To employ or contract for consulting  engineers,  architects,  attor-
 27        neys,  accountants,  construction  and financial experts, superintendents,
 28        managers, and such other employees and agents as may be necessary  in  its
 29        judgment and to fix their compensation;
 30        (m)  To  enter  into  contracts, agreements or other transactions with and
 31        accept grants and the cooperation of  the  United  States  or  any  agency
 32        thereof or any state or any agency or governmental subdivision thereof, in
 33        furtherance of the purposes of this chapter including, but not limited to,
 34        the development, maintenance, operation, and financing of any facility and
 35        to  do  any  and all things necessary in order to avail itself of such aid
 36        and cooperation;
 37        (n)  To receive and accept aid or contributions from any source of  money,
 38        property,  labor,  or other things of value, to be held, used, and applied
 39        to carry out the purposes of this chapter subject to such conditions  upon
 40        which  such  grants and contributions may be made, including, but not lim-
 41        ited to, gifts or grants from any  department  or  agency  of  the  United
 42        States or any state for any purpose consistent with this chapter;
 43        (o)  To  assign  and pledge all or any part of its revenues and income and
 44        to mortgage or otherwise encumber any or all of  its  facilities  and  the
 45        site  or sites thereof, whether then owned or thereafter acquired, for the
 46        benefit and security of the holders of bonds issued to finance such facil-
 47        ities or any portion thereof;
 48        (p)  To make loans to any participating utility to finance the cost of any
 49        facilities in accordance with an agreement between the authority and  such
 50        participating utility;
 51        (q)  To  make  secured  or  unsecured  loans to a participating utility to
 52        refinance obligations and indebtedness incurred for facilities  undertaken
 53        and  completed  prior  to  or after the enactment of this chapter when the
 54        authority finds that such financing is in the public interest  and  either
 55        alleviates  the financial hardship upon the participating utility or is in
  1        connection with other financing by the authority  for  such  participating
  2        utility or may be expected to result in a cost-effective delivery of elec-
  3        tricity  to the consumers served by the participating utility, or any com-
  4        bination thereof;
  5        (r)  To undertake and finance renewable energy generation projects  devel-
  6        oped by an independent power producer;
  7        (s)  To finance energy conservation measures administered by participating
  8        utilities  to  enable industrial, agricultural, commercial and residential
  9        consumers to more efficiently utilize energy and to  reduce  their  energy
 10        requirements;
 11        (t)  To  charge  to  and  equitably apportion its administrative costs and
 12        expenses incurred in the exercise of the powers and  duties  conferred  by
 13        this chapter among the participating utilities that have entered into con-
 14        tracts with the authority;
 15        (u)  To procure insurance against any loss in connection with its property
 16        and other assets in such amounts and from such insurers as it deems desir-
 17        able  and to self-insure against such risks as it shall deem to be reason-
 18        able;
 19        (v)  To invest any funds not needed for  immediate  use  or  disbursement,
 20        including any funds held in reserve, in:
 21             (i)   Bonds,  notes and other obligations of the United States or any
 22             agency or instrumentality thereof and  other  securities  secured  by
 23             such bonds, notes or other obligations;
 24             (ii)  Money market funds which are insured or the assets of which are
 25             limited  to obligations of the United States or any agency or instru-
 26             mentality thereof;
 27             (iii) Time certificates of deposit and savings accounts;
 28             (iv)  Commercial paper which, at the time of its purchase,  is  rated
 29             in the highest category by a nationally recognized rating service;
 30             (v)   Property  or securities in which the state treasurer may invest
 31             funds in the state treasury pursuant to section 67-1210, Idaho  Code;
 32             and
 33             (vi)  With respect to any funds representing bond proceeds or amounts
 34             pledged  to  the  payment  of bonds, such other investments as may be
 35             specified in a bond resolution or trust indenture securing  bonds  of
 36             the authority;
 37        (w)  To  participate  in cooperative ventures with any agencies, organiza-
 38        tions, and individuals in order to provide affordable and reliable  energy
 39        to the residents of the state;
 40        (x)  To participate in the development and maintenance of an energy policy
 41        for the state; and
 42        (y)  To  do  all things necessary and convenient to carry out the purposes
 43        of this chapter.
 44        (2)  Notwithstanding any other provision of this  chapter,  the  authority
 45    shall have no power to:
 46        (a)  Acquire  the operating property of any investor-owned, private, coop-
 47        erative, municipal or other utility by the exercise of the power  of  emi-
 48        nent domain;
 49        (b)  Provide  financing  for  the acquisition of the operating property of
 50        any such utility by or under threat of  eminent  domain,  in  either  case
 51        unless such utility consents in writing to the acquisition; or
 52        (c)  Deliver  retail electricity or related retail products or services to
 53        any ultimate consumer, whether in violation of the Idaho electric supplier
 54        stabilization act or otherwise.
  2    authority will endeavor to achieve efficiencies and economies of scale by pur-
  3    suing the development of facilities with multiple participating utilities on a
  4    joint and cooperative basis and shall,  to  the  fullest  extent  practicable,
  5    offer  all potential participating utilities the opportunity to participate in
  6    the development of a facility and the electricity, service or  product  to  be
  7    provided by the facility.
  8        (2)  The authority shall not commence the development or financing for any
  9    facility  until  it  shall have entered into contractual arrangements with one
 10    (1) or more participating utilities that contain provisions determined by  the
 11    authority  to  provide  adequate  assurance  that  all  capital, operating and
 12    related costs of the facility will be paid by or provided for by  one  (1)  or
 13    more participating utilities.
 14        (3)  The  authority may acquire, construct and own any facility undertaken
 15    by it, may cause such facility to be acquired and constructed on its behalf by
 16    one (1) or more participating utilities as its agent,  may  enter  into  joint
 17    ownership  arrangements  with respect to any facility, and may enter into con-
 18    tractual arrangements with third parties for the acquisition and  construction
 19    of a facility.
 20        (4)  The  authority  may agree that, upon the payment in full of all bonds
 21    issued by the authority to finance or refinance the cost  of  a  facility  and
 22    upon the discharge of all other obligations of the authority with respect to a
 23    facility, it will convey title to the facility to the participating utility or
 24    utilities  with respect to such facility. Any such conveyance shall be in pro-
 25    portion to the funds provided or paid by the participating utility in  respect
 26    of the debt service and operating costs of the facility.
 27        67-8910.  MANAGEMENT AND OPERATION OF FACILITIES. The authority may manage
 28    and  operate  any electric facilities undertaken by it, may cause such facili-
 29    ties to be managed and operated on its behalf by one (1) or more participating
 30    utilities, may enter into  joint  operating  arrangements  with  participating
 31    utilities  and  others and may enter into any and all contractual arrangements
 32    determined by the authority to promote the effective and efficient  management
 33    and operation of its facilities.
 35    AND  CHARGES.  (1)  The  authority shall operate on a not-for-profit basis and
 36    shall sell the electricity, product or service provided by its  facilities  at
 37    cost,  as  provided  in subsections (2) and (3) of this section. The authority
 38    shall contract with one (1) or more participating utilities for  the  sale  of
 39    the  electricity, product or service provided or to be provided by each facil-
 40    ity upon such terms and conditions as the authority shall deem proper  and  to
 41    provide reasonable assurances that the authority will recover all of its costs
 42    associated  with each of its facilities. Such contracts may contain the agree-
 43    ment of each participating utility to purchase a  specified  quantity  of  the
 44    output  or service provided by a facility, to purchase all or a portion of its
 45    requirements for electric generation, transmission or other services from  the
 46    authority and to make payments to the authority regardless of whether any par-
 47    ticular  facility  is completed, operable, operating, damaged or destroyed, in
 48    whole or in part.
 49        (2)  The authority shall establish and  collect  rates,  rents,  fees  and
 50    charges  for  the  electricity, product or service from its facilities that it
 51    shall find to be necessary in order to produce revenues which,  together  with
 52    all  other  available  moneys, revenues, income and receipts of the authority,
 53    will be sufficient:
  1        (a)  To pay, as the same become due, the principal of and interest on  the
  2        bonds  issued  to  finance or refinance its facilities and to make, create
  3        and maintain deposits, reserves and margins required or  provided  for  in
  4        any  resolution  authorizing,  or  trust  agreement securing, bonds of the
  5        authority;
  6        (b)  To pay its costs, including its organizational, operational and  man-
  7        agement costs; and
  8        (c)  To  pay  for  the  operation,  maintenance,  renewal, replacement and
  9        repair of its facilities, including necessary reserves and allowances  for
 10        depreciation and decommissioning costs.
 11    The  authority  is hereby authorized to fix, revise, charge and collect rates,
 12    rents, fees and charges for the use of and for the  electricity,  products  or
 13    services  furnished  or  to be furnished by each facility and to contract with
 14    any person, partnership, association or corporation, or other body, public  or
 15    private, in respect thereof.
 16        (3)  Rates,  rents,  fees and charges for the electricity, product or ser-
 17    vice from a facility shall be revised and adjusted by the authority from  time
 18    to  time  as  necessary  so  as to provide funds sufficient, together with any
 19    other revenues or moneys available therefor, to pay the cost  of  maintaining,
 20    repairing  and operating the facility and each and every portion thereof; and,
 21    to the extent that the payment of such cost has not otherwise been  adequately
 22    provided for, to pay the principal of and the interest on outstanding bonds of
 23    the  authority issued in respect of such facility as the same shall become due
 24    and payable.
 25        (4)  Notwithstanding the language, terms or definitions contained in  sec-
 26    tions  61-119 and 61-129, Idaho Code, the authority shall not be considered to
 27    be an electrical corporation as provided by section 61-119, Idaho Code,  or  a
 28    public  utility  as  provided  by  section  61-129, Idaho Code, and the rates,
 29    rents, fees and charges established by the authority shall not be  subject  to
 30    supervision  or  regulation by the commission or by any other department, com-
 31    mission, board, body, bureau or agency of this state other than the authority.
 33    UTILITIES.  (1) A participating utility contracting with the authority for the
 34    electricity, service or product provided by a facility may establish  one  (1)
 35    or  more  rate  stabilization  charges,  cost  recovery  charges or power cost
 36    adjustment charges as it deems necessary to:
 37        (a)  Provide for the payment of all  amounts  owed  by  the  participating
 38        utility to the authority with respect to the facility;
 39        (b)  Accumulate funds to enable the participating utility to pay the costs
 40        of  future facilities set forth in its long-range capital and construction
 41        plans; and
 42        (c)  Otherwise enable the participating utility to stabilize its rates, to
 43        protect its consumers from volatile market prices and  to  insure  against
 44        market and other risks.
 45    Such  rate  stabilization charges, cost recovery charges or power cost adjust-
 46    ment charges may be established by the participating  utility  as  a  separate
 47    component of its existing rates and charges or as a new charge.
 48        (2)  A  participating  utility  that  is subject to rate regulation by the
 49    commission shall submit each of its proposed rate stabilization charges,  cost
 50    recovery  charges  or  power  cost  adjustment  charges  to the commission for
 51    approval.
 52        (3)  Each other participating utility that serves  electric  consumers  in
 53    the  state  but which is not subject to rate regulation by the commission, may
 54    establish a rate stabilization charge, cost  recovery  charge  or  power  cost
  1    adjustment  charge  only after it has provided adequate notice of and a public
  2    meeting or hearing on such charge to the members or consumers served by it.  A
  3    notice shall be deemed to be adequate if:
  4        (a)  It is given at least fifteen (15) days prior to the public meeting or
  5        hearing  in  the  manner  usually employed by the participating utility to
  6        give notice of its hearings or meetings, by mail,  publication  or  other-
  7        wise; and
  8        (b)  It  provides  a brief description of the proposed rate stabilization,
  9        cost recovery or power cost adjustment charges and a summary of  the  pur-
 10        poses for which it is being established.
 11    After the meeting or hearing has been held, the participating utility may pro-
 12    ceed  to establish and fix the rate stabilization, cost recovery or power cost
 13    adjustment charge.
 14        (4)  Each participating utility may agree in its contractual  arrangements
 15    with  the  authority  as  to the use and disposition of all or any part of the
 16    revenues from any rate stabilization, cost recovery or power  cost  adjustment
 17    charges  established  by the participating utility. Each participating utility
 18    may pledge, and may create and grant a security interest in, all or a  portion
 19    of such revenues to secure its payment obligations to the authority in respect
 20    of  any facility. Any such agreement or pledge by a participating utility that
 21    is a municipal corporation of the state shall  not  be  deemed  to  create  an
 22    indebtedness  or liability of such municipal corporation or a loan or donation
 23    of its credit within the meaning of any constitutional or statutory provision.
 25    may  enter  into  agreements  with  any  other state body or agency, any other
 26    political subdivision of the state and any other public agency, as defined  in
 27    section  67-2327, Idaho Code, for the joint exercise of powers and the author-
 28    ity and all other public agencies may  join  or  cooperate  with  each  other,
 29    either  jointly  or  otherwise, in the exercise of any of their powers for the
 30    purpose of planning, undertaking, owning, constructing,  or  contracting  with
 31    respect to, a facility.
 32        67-8914.  EXEMPTION  FROM INCOME TAXATION. All bonds issued by the author-
 33    ity and the interest thereon and all revenues, fees, charges,  gifts,  grants,
 34    receipts and other moneys of the authority pledged to the payment of its bonds
 35    shall  at  all times be free from the taxes imposed under the Idaho income tax
 36    act.
 38    authority  shall  have  power  and is hereby authorized to issue, from time to
 39    time, its bonds in such principal amount as it shall determine to be necessary
 40    to provide sufficient funds to pay, finance  or  refinance  the  cost  of  any
 41    facility, including loans for energy conservation measures as provided in sec-
 42    tion  67-8920,  Idaho  Code, and all other expenditures of the authority inci-
 43    dental and necessary or convenient to carry out  its  corporate  purposes  and
 44    powers.  The  cost of any facility shall include all amounts determined by the
 45    authority to be necessary or desirable in  connection  with  the  acquisition,
 46    construction,  development, improvement and equipping of a facility including,
 47    but not limited to:
 48        (a)  The cost of acquiring all lands, structures, real or  personal  prop-
 49        erty,  rights,  rights-of-way,  franchises, easements and interests neces-
 50        sary, used or useful for or in connection with the facility;
 51        (b)  The cost of all machinery and equipment necessary, used or useful  in
 52        connection with the facility;
  1        (c)  The  cost of architectural, engineering and legal services, including
  2        studies, surveys, plans and specifications, and related services;
  3        (d)  The cost of interest on bonds prior to and during  construction,  and
  4        if  judged  advisable  by  the authority, for a period after completion of
  5        such construction, and all other costs incidental to the issuance of bonds
  6        by the authority;
  7        (e)  The cost of reserves for future repairs, replacements  and  additions
  8        to    a  facility,  insurance  policies and premiums and related costs and
  9        expenses; and
 10        (f)  All other costs and expenses determined by the authority to be neces-
 11        sary and incidental to the acquisition, construction, financing and  plac-
 12        ing in operation of a facility.
 13    The  proceeds  of the bonds may also be used to provide for the payment of any
 14    financial fees and charges, including underwriting discounts, financial  advi-
 15    sory,  legal  and trustee fees and expenses, the premiums for or costs of bond
 16    insurance, surety bonds or other forms of credit or liquidity enhancement, and
 17    to provide for any necessary debt service reserves associated with such bonds.
 18        (2)  The bonds shall be authorized by resolution  or  resolutions  of  the
 19    authority, shall be dated, shall mature, shall bear interest, shall be in such
 20    form  and shall otherwise have such terms and provisions as such resolution or
 21    resolutions may provide, except that no bond shall mature more than forty (40)
 22    years from the date of its issue. The bonds shall bear interest at  such  rate
 23    or rates, shall be executed in such manner, shall be payable in such medium at
 24    such place or places, and be subject to such terms of redemption as such reso-
 25    lution  or resolutions may provide. The authority may sell its bonds at public
 26    or private sale, at such price or prices as it shall determine.
 27        (3)  Any resolution or resolutions authorizing bonds, or any trust  inden-
 28    ture or other instrument securing bonds, may contain provisions which shall be
 29    a part of the contract or contracts with the holders thereof, as to:
 30        (a)  Pledging and assigning all or any part of the revenues of the author-
 31        ity  to  secure  the  payment of the bonds, and the use and disposition of
 32        such revenues pending the payment of the bonds;
 33        (b)  Pledging and assigning all or any part of the assets of the authority
 34        including mortgages and obligations securing the same, to secure the  pay-
 35        ment of the bonds;
 36        (c)  The setting aside of reserves or sinking funds and the regulation and
 37        disposition thereof;
 38        (d)  Limitations on the purpose to which the proceeds of sale of bonds may
 39        be  applied and limitations on the issuance of additional bonds, the terms
 40        upon which additional bonds may be issued and secured, and  the  refunding
 41        of outstanding or other bonds;
 42        (e)  The  procedure, if any, by which the terms of any contract with bond-
 43        holders may be amended, the amount of bonds the holders of which must con-
 44        sent thereto, and the manner in which such consent may be given;
 45        (f)  Vesting in a trustee or trustees such property,  rights,  powers  and
 46        duties  in  trust as the authority may determine, which may include any or
 47        all of the rights, powers and duties of the trustee appointed by the bond-
 48        holders pursuant to this chapter;
 49        (g)  Defining the acts or  omissions  to  act  which  shall  constitute  a
 50        default  in  the obligations and duties of the authority to the holders of
 51        the bonds and providing for the rights and remedies of the holders of  the
 52        bonds  in  the  event  of such default, including as a matter of right the
 53        appointment of a receiver; and
 54        (h)  Any other matters, of like or different character, deemed  necessary,
 55        desirable  or appropriate by the authority in connection with the issuance
  1        of its bonds.
  2        (4)  Any pledge made by the authority shall be valid and binding from  the
  3    time  when the pledge is made; the revenues, moneys or property so pledged and
  4    thereafter received by the authority shall immediately be subject to the  lien
  5    of  such  pledge without any physical delivery thereof or further act, and the
  6    lien of any such pledge shall be valid and binding as against all parties hav-
  7    ing claims of any kind in tort, contract or otherwise against  the  authority,
  8    irrespective  of whether such parties have notice thereof. Neither the resolu-
  9    tion nor any other instrument by which a pledge is created need be recorded.
 10        (5)  Neither the directors of the authority nor any other person executing
 11    such bonds shall be subject to any personal  liability  or  accountability  by
 12    reason of the issuance thereof.
 13        (6)  The  authority  may from time to time purchase any of its outstanding
 14    bonds out of any moneys available to it for such  purpose  at  such  price  or
 15    prices as the authority shall deem reasonable or necessary.
 16        (7)  In  the  discretion  of  the authority, the bonds may be secured by a
 17    trust indenture by and between the authority and a  corporate  trustee,  which
 18    may be any bank or trust company organized under the laws of the United States
 19    or  any state. Such trust indenture may contain such provisions for protecting
 20    and enforcing the rights and remedies of the bondholders as may be  determined
 21    by  the  authority to be reasonable and necessary, including covenants setting
 22    forth the duties of the authority in relation to the exercise of its corporate
 23    powers, the custody, the safeguarding  and  application  of  all  moneys,  the
 24    events  of default and the rights and remedies of the bondholders and the cor-
 25    porate trustee upon the occurrence of an event of default. The  authority  may
 26    provide  by  such trust indenture for the payment of the proceeds of the bonds
 27    and the revenues to the trustee under such trust indenture  or  other  deposi-
 28    tory,  and  for  the  method of disbursement thereof, with such safeguards and
 29    restrictions as it may determine. All expenses incurred in carrying  out  such
 30    trust  indenture  may  be  treated  as a part of the operating expenses of the
 31    authority. If the bonds shall be secured by a trust indenture, the bondholders
 32    shall have no authority to appoint a separate trustee to represent them.
 33        (8)  Whether or not the bonds are of such form  and  character  as  to  be
 34    negotiable  instruments  under  the  terms of the uniform commercial code, the
 35    bonds are hereby made negotiable instruments within the meaning of and for all
 36    the purposes of the uniform commercial code, subject only to the provisions of
 37    the bonds for registration.
 38        67-8916.  REFUNDING BONDS. (1) The authority may provide for the  issuance
 39    of  refunding  bonds  for  the purpose of refunding any bonds then outstanding
 40    which have been issued under the provisions of  this  chapter,  including  the
 41    payment  of  any redemption premium thereon, any interest accrued or to accrue
 42    to the date of redemption of such bonds and for any additional corporate  pur-
 43    pose  of  the authority. The issuance of such bonds, the maturities, and other
 44    details thereof, the rights of the holders thereof, and the rights, duties and
 45    obligations of the authority in respect of the same shall be governed  by  the
 46    provisions  of  this chapter which relate to the issuance of bonds, insofar as
 47    such provisions may be appropriate therefor.
 48        (2)  Refunding bonds may be sold or exchanged for outstanding bonds issued
 49    under this chapter and, if sold, the proceeds thereof may be applied, in addi-
 50    tion to any other authorized purposes, to the purchase, redemption or  payment
 51    of such outstanding bonds. Pending the application of the proceeds of any such
 52    refunding bonds, with any other available funds, to the payment of the princi-
 53    pal, accrued interest, and any redemption premium on the bonds being refunded,
 54    and, if so provided or permitted in the resolution authorizing the issuance of
  1    such  refunding bonds or in the trust agreement securing the same, to the pay-
  2    ment of any interest on such refunding bonds and any  expenses  in  connection
  3    with  such refunding, such proceeds may be invested in such obligations as may
  4    be permitted for the defeasance of the outstanding bonds in the resolution  or
  5    indenture under which they were issued.
  6        67-8917.  PAYMENT  OF  BONDS -- NONLIABILITY OF STATE. (1) Bonds issued by
  7    the authority shall not constitute or become an indebtedness,  or  a  debt  or
  8    liability  of  the state or any agency or subdivision of the state and neither
  9    the state nor any of its agencies or subdivisions  shall  be  liable  on  such
 10    bonds  nor  shall  the bonds constitute the giving, pledging or loaning of the
 11    faith and credit of the state or any agency or subdivision of the  state,  but
 12    shall  be  payable solely from the funds provided for their payment. The issu-
 13    ance of bonds under the provisions of this chapter shall not, directly,  indi-
 14    rectly or contingently, obligate the state or any agency or subdivision of the
 15    state to levy or collect any form of taxes or assessments for their payment or
 16    to  create  any  indebtedness  payable out of taxes or assessments. Nothing in
 17    this chapter shall be construed to authorize the authority to create a debt of
 18    the state within the meaning of the constitution or statutes of the  state  of
 19    Idaho  or  authorize the authority to levy or collect taxes or assessments and
 20    all bonds issued by the authority pursuant to the provisions of  this  chapter
 21    are  payable  and  shall  state  that  they  are payable solely from the funds
 22    pledged for their payment in accordance with the resolution authorizing  their
 23    issuance  or  in  any trust indenture or mortgage or deed of trust executed as
 24    security therefor and are not a debt or liability of the state of Idaho.
 25        (2)  The state shall not in any event be liable for  the  payment  of  the
 26    principal  of or interest on any bonds of the authority or for the performance
 27    of any pledge, mortgage, obligation or agreement of any kind whatsoever  which
 28    may  be  undertaken  by the authority. No breach of any such pledge, mortgage,
 29    obligation or agreement shall impose any pecuniary liability upon the state or
 30    any charge upon its general credit or against its taxing power.
 31        (3)  All expenses incurred in carrying out the provisions of this  chapter
 32    shall  be payable solely from funds provided under the authority of this chap-
 33    ter and no liability or obligation shall be incurred by the  authority  beyond
 34    the extent to which moneys shall have been provided under this chapter.
 35        67-8918.  STATE'S  PLEDGE.  (1)  The  state pledges to and agrees with the
 36    holders of any bonds issued under this chapter, and with those parties who may
 37    enter into contracts with the authority pursuant to  the  provisions  of  this
 38    chapter,  that  the state will not limit, alter, restrict or impair the rights
 39    hereby vested in the authority to acquire,  construct,  reconstruct,  maintain
 40    and  operate  any facility as defined in this chapter or to establish, revise,
 41    charge and collect rates, rents, fees and other charges as may  be  convenient
 42    or  necessary  to  produce sufficient revenues to meet the expenses of mainte-
 43    nance and operation thereof and to fulfill the terms of  any  agreements  made
 44    with  the  holders of bonds authorized and issued under this chapter, and with
 45    the parties who may enter into contracts with the authority pursuant  to  this
 46    chapter,  or  in  any way impair the rights or remedies of the holders of such
 47    bonds or of such parties until the bonds, together with the interest  thereon,
 48    are  fully  paid  and discharged and such contracts are fully performed on the
 49    part of the authority.
 50        (2)  Nothing in this chapter precludes such limitation  or  alteration  if
 51    and  when  adequate provision is made by law for the protection of the holders
 52    of such bonds or those entering into such contracts with the authority.
 53        (3)  The authority is authorized to include this  pledge  and  undertaking
  1    for the state in such bonds and in such contracts.
  2        67-8919.  RENEWABLE  ENERGY  GENERATION PROJECTS. The authority may under-
  3    take any renewable energy generation project for the benefit  of  one  (1)  or
  4    more  independent  power producers and may issue its bonds to finance the cost
  5    thereof, all to the same extent and subject to the same provisions  applicable
  6    to  the  undertaking  and financing of other facilities for the benefit of one
  7    (1) or more participating utilities. In furtherance of the foregoing, an inde-
  8    pendent power producer shall be deemed to  be  a  participating  utility  with
  9    respect  to  a  renewable  energy  generation project for purposes of sections
 10    67-8909, 67-8910 and 67-8911, Idaho Code.
 11        67-8920.  LOANS TO FUND ENERGY CONSERVATION MEASURES.  (1)  The  authority
 12    may  provide  loans,  under  such  terms and conditions as are approved by the
 13    authority, to any participating utility, which shall use the proceeds of  such
 14    loan  to  make loans or funding available to industrial, agricultural, commer-
 15    cial and residential energy consumers in Idaho for the following purposes:
 16        (a)  The purchase of consumer appliances and home improvements with energy
 17        efficient characteristics, as approved by the commission, electric cooper-
 18        ative board or the council of a municipal participating utility, as appli-
 19        cable;
 20        (b)  The purchase or lease of business equipment and facility improvements
 21        with energy efficient characteristics,  as  approved  by  the  commission,
 22        electric  cooperative  board  or  the council of a municipal participating
 23        utility, as applicable; and
 24        (c)  Any other energy conservation measures, as approved  by  the  commis-
 25        sion, electric cooperative board or the council of a municipal participat-
 26        ing utility, as applicable.
 27        (2)  As  a  condition of the receipt of a loan pursuant to this section, a
 28    participating utility may be required by the authority to conduct a comprehen-
 29    sive marketing program that makes consumers aware of the availability  of  the
 30    financial assistance program relating to such loan, and to provide appropriate
 31    security  for  the  repayment  of  such loan, including, without limitation, a
 32    pledge to the authority of the consumer or business loan repayments  collected
 33    through utility bills, as applicable, and a certification that the duration of
 34    the loan will not exceed the useful life of a purchase.
 35        (3)  The  authority  shall  require  that  any  equipment  or  improvement
 36    financed  by a loan made pursuant to this section shall be certified as having
 37    been installed or completed.
 38        (4)  The authority may require that a participating utility utilize a con-
 39    sumer protection plan for screening qualified contractors who serve  consumers
 40    under this section.
 41        67-8921.  FEES. (1) All expenses of the authority incurred in carrying out
 42    the  provisions  of  this  chapter shall be payable solely from funds provided
 43    under the authority of this chapter and no liability shall be incurred by  the
 44    authority  beyond  the  extent  to which moneys shall have been provided under
 45    this chapter, except that for the purposes of meeting the  necessary  expenses
 46    of initial organization and operation until such date as the authority derives
 47    moneys from funds provided hereunder, the authority shall be empowered to bor-
 48    row  moneys as may be required for such necessary expenses of organization and
 49    operation. Such borrowed moneys shall be repaid within a reasonable time after
 50    the authority receives funds provided for under this chapter.
 51        (2)  When any application is made to the authority  by  any  participating
 52    utility  for financial assistance to provide for its facilities, such applica-
  1    tion shall be accompanied by an "initial planning service fee"  in  an  amount
  2    determined  by  the  authority.  Such  initial  planning  service fee shall be
  3    included in the cost of the facilities to be financed and shall not be refund-
  4    able by the authority whether or not any such application is approved.
  5        (3)  In addition to such initial fee, an  "annual  planning  service  fee"
  6    shall  be  paid  to  the  authority by each participating utility in an amount
  7    determined under the contract or agreement between the authority and the prac-
  8    ticing utility. Such annual planning service fee shall be paid on  said  dates
  9    or in installments as may be satisfactory to the authority.
 10        (4)  It is anticipated such fees shall be used for:
 11        (a)  Necessary administrative expenses; and
 12        (b)  Reserves for anticipated future expenses.
 13        (5)  In  addition the authority may, for a negotiated fee, retain the ser-
 14    vices of any other public or private person, firm, partnership, association or
 15    corporation for the furnishing of services and data for use by  the  authority
 16    in determining the need and location of any such facilities for which applica-
 17    tion  is  being  made  or  for such other services or surveys as the authority
 18    deems necessary to carry out the purposes of this chapter.
 20    EXECUTION.  All  real  property of the authority shall be exempt from levy and
 21    sale by virtue of an execution, and no execution  or  other  judicial  process
 22    shall issue against the same nor shall any judgment against the authority be a
 23    charge  or  lien upon its real property; provided however, that the provisions
 24    of this section shall not apply to or limit the right of bondholders to  fore-
 25    close  or otherwise enforce any mortgage or other security of the authority or
 26    the right of obligees and bondholders to pursue any remedies for the  enforce-
 27    ment  of any pledge or lien given by the authority on its rents, fees or reve-
 28    nues or the right of obligees or bondholders to pursue any remedies  conferred
 29    upon the same pursuant to this chapter.
 30        67-8923.  ANNUAL REPORT. The authority shall submit to the governor within
 31    ninety  (90)  days  after  the  end of its fiscal year a complete and detailed
 32    report setting forth:
 33        (1)  Its operations and accomplishments;
 34        (2)  Its receipts and expenditures during such fiscal year  in  accordance
 35    with  the  categories  or classifications established by the authority for its
 36    operating and capital outlay purposes;
 37        (3)  Its assets and liabilities at the end of its fiscal  year,  including
 38    the status of reserve, special or other funds; and
 39        (4)  A  schedule  of  its bonds outstanding at the end of its fiscal year,
 40    together with a statement of the amounts redeemed  and  incurred  during  such
 41    fiscal year.
 42        67-8924.  AUTHORITY  OBLIGATIONS  ARE  LEGAL INVESTMENTS. The bonds of the
 43    authority shall be legal investments in which all public officers  and  public
 44    bodies  of  this  state,  its  political  subdivisions, all municipalities and
 45    municipal subdivisions, all insurance companies  and  associations  and  other
 46    persons carrying on an insurance business, all banks, bankers, banking associ-
 47    ations,  trust  companies,  savings  banks and savings associations, including
 48    savings and loan associations, building and loan associations, investment com-
 49    panies and other persons carrying on a banking business,  all  administrators,
 50    guardians,  executors,  trustees  and other fiduciaries, and all other persons
 51    whatsoever who are now or may hereafter be authorized to invest in bonds or in
 52    other obligations of the state, may properly and legally invest funds, includ-
  1    ing capital, in their control or belonging to them. The bonds are also  hereby
  2    made  securities which may properly and legally be deposited with and received
  3    by all public officers and bodies of the state or any agency or political sub-
  4    divisions of the state and all municipalities and public corporations for  any
  5    purpose  for  which  the deposit of bonds or other obligations of the state is
  6    now or may hereafter be authorized by law.
  7        67-8925.  CHAPTER NOT A LIMITATION OF POWERS.  Neither  this  chapter  nor
  8    anything herein contained is or shall be construed as a restriction or limita-
  9    tion  upon  any powers which the authority might otherwise have under any laws
 10    of this state, and this chapter is cumulative to any such powers. This chapter
 11    does and shall be construed to provide a complete additional, and  alternative
 12    method for the doing of the things authorized thereby and shall be regarded as
 13    supplemental  and  additional  to powers conferred by other laws. However, the
 14    issuance of bonds under the provisions of this chapter need  not  comply  with
 15    the  requirements  of any other state law applicable to the issuance of bonds,
 16    notes and other obligations. Contracts for the construction and acquisition of
 17    any facilities undertaken pursuant to this chapter need not  comply  with  the
 18    provisions of any other state law applicable to contracts for the construction
 19    and  acquisition  of  state owned property. No proceedings, notice or approval
 20    shall be required for the issuance of  any  bonds  by  the  authority  or  any
 21    instrument as security therefor, except as is provided in this chapter.
 22        67-8926.  CONSTITUTIONALITY.  (1)  Notwithstanding  any  other evidence of
 23    legislative intent, it is hereby declared to be  the  controlling  legislative
 24    intent,  that  if  any provision of this chapter or the application thereof to
 25    any person or circumstance is held invalid, the remainder of this chapter  and
 26    the  application  of  such  provisions  to persons or circumstances other than
 27    those as to which it is held invalid shall not be affected thereby.
 28        (2)  If any section, subdivision, paragraph, sentence, clause or provision
 29    of this chapter shall be unconstitutional or ineffective, in whole or in part,
 30    to the extent that it is not unconstitutional or ineffective it shall be valid
 31    and effective and no other section, subdivision, paragraph,  sentence,  clause
 32    or provision shall on account thereof be deemed invalid or ineffective.
 33        67-8927.  INCONSISTENCY WITH OTHER LAWS. Insofar as the provisions of this
 34    chapter  are  inconsistent with the provisions of any other law, general, spe-
 35    cific or local, the provisions of this chapter shall be controlling.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                            RS 14544C1

The purpose of this legislation is to create the Idaho Energy Resources
Authority (ERA), an instrumentality independent from the state with authority
to finance the construction of electric generation, transmission, conservation
and renewable energy projects.  The ERA's purpose is to provide investor-
owned, municipal and cooperative electric utilities and renewable energy
developers in Idaho a least cost financing vehicle for building Idaho's
electric infrastructure.

Idaho currently imports more than half the electricity consumed in the state. 
Significant transmission bottlenecks exist in most major transmission
corridors across the state.  The Bonneville Power Administration no longer has
sufficient generating resources to meet future load growth of Idaho's
municipal and cooperative utilities.  All Idaho utilities need to make
significant investment in both generation and transmission infrastructure to
provide reliable electric service at stable rates, and to meet expected load

The ERA will have the power to issue revenue bonds on behalf of one or more
participating utilities to finance energy facilities.  Bonds issued by the ERA
will be secured solely by debt service payments made to the ERA by the
participating utilities and by security interests held by the ERA in the
financed facilities.  The State will have no obligation (primary or residual)
to pay bonds issued by the ERA.  Participation by utilities in ERA financings
is optional, although it is expected the ERA will be able to offer least cost
financing options.  The ERA will operate on a non-profit basis and report
annually to the Governor.

                          FISCAL NOTE
This legislation will have no negative fiscal impact on the state.  Positive
fiscal impacts will occur as the ERA helps stimulate economic growth and
enhances the property tax base of local taxing jurisdictions.  All
administrative costs of the Authority will be paid by the utilities financing
facilities through the ERA.



Name:  Representative George Eskridge    
       Representative Dell Raybould       
       Senator Brent Hill
       Senator Bart Davis
Phone: 332-1000

       Ron Williams
Phone: 334-6633

       Ken Harward
Phone: 334-8594

STATEMENT OF PURPOSE/FISCAL NOTE                              H 30