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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 generation. 01/24 House intro - 1st rdg - to printing 01/25 Rpt prt - to Env
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 30 BY ENVIRONMENT, ENERGY AND TECHNOLOGY COMMITTEE 1 AN ACT 2 RELATING TO AN IDAHO ENERGY RESOURCES AUTHORITY; AMENDING TITLE 67, IDAHO 3 CODE, BY THE ADDITION OF A NEW CHAPTER 89, TITLE 67, IDAHO CODE, TO PRO- 4 VIDE A SHORT TITLE, TO PROVIDE A DECLARATION OF NECESSITY AND PURPOSE AND 5 TO PROVIDE FOR LIBERAL CONSTRUCTION, TO DEFINE TERMS, TO CREATE THE IDAHO 6 ENERGY RESOURCES AUTHORITY, TO PROVIDE FOR DIRECTORS OF THE AUTHORITY, TO 7 PROVIDE TERMS OF OFFICE, APPOINTMENT AND FILLING VACANCIES AND REMOVAL, TO 8 PROVIDE A QUORUM, MODE OF ACTION AND COMPENSATION FOR THE DIRECTORS, TO 9 PROVIDE FOR AN ORGANIZATIONAL MEETING, OFFICERS AND APPOINTMENT OF AN 10 EXECUTIVE DIRECTOR, TO PROVIDE FOR DELEGATION OF POWER, TO PROVIDE A 11 SURETY BOND AND TO PROVIDE FOR A CONFLICT OF INTEREST, TO PROVIDE POWERS 12 OF THE AUTHORITY, TO PROVIDE FOR DEVELOPMENT, ACQUISITION AND CONSTRUCTION 13 OF FACILITIES, TO PROVIDE FOR MANAGEMENT AND OPERATION OF FACILITIES, TO 14 PROVIDE FOR THE SALE OF ELECTRICITY, PRODUCT OR SERVICE FROM FACILITIES 15 AND TO PROVIDE FOR RATES AND CHARGES, TO PROVIDE FOR COST RECOVERY AND FOR 16 RATE STABILIZATION CHARGES OF PARTICIPATING UTILITIES, TO PROVIDE FOR 17 COOPERATION WITH OTHER AGENCIES AND POLITICAL SUBDIVISIONS, TO PROVIDE FOR 18 EXEMPTION FROM INCOME TAXATION, TO PROVIDE FOR THE ISSUANCE OF BONDS TO 19 FINANCE FACILITIES AND FOR LOANS FOR ENERGY CONSERVATION MEASURES, TO PRO- 20 VIDE FOR REFUNDING OF BONDS, TO PROVIDE FOR PAYMENT OF BONDS AND THE NON- 21 LIABILITY OF THE STATE OF IDAHO, TO PROVIDE FOR THE STATE OF IDAHO'S 22 PLEDGE TO HOLDERS OF BONDS, TO PROVIDE FOR RENEWABLE ENERGY GENERATION 23 PROJECTS, TO PROVIDE LOANS TO FUND ENERGY CONSERVATION MEASURES, TO PRO- 24 VIDE FOR FEES, TO PROVIDE FOR EXEMPTION OF REAL PROPERTY OF THE AUTHORITY 25 FROM LEVY AND SALE BY EXECUTION, TO PROVIDE FOR AN ANNUAL REPORT, TO PRO- 26 VIDE THAT AUTHORITY OBLIGATIONS ARE LEGAL INVESTMENTS, TO PROVIDE THAT 27 THIS ACT IS NOT A LIMITATION OF POWERS OF THE AUTHORITY, TO PROVIDE FOR 28 CONSTITUTIONALITY AND TO PROVIDE FOR INCONSISTENCY WITH OTHER LAWS. 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." 37 67-8902. DECLARATION OF NECESSITY AND PURPOSE -- LIBERAL CONSTRUCTION. 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- 2 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; 3 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 4 1 chapter is and shall be deemed to be the performance of essential public func- 2 tions and purposes. 3 67-8905. DIRECTORS -- TERMS OF OFFICE -- APPOINTMENT -- FILLING VACANCIES 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. 40 67-8907. ORGANIZATIONAL MEETING -- CHAIRMAN -- SECRETARY AND TREASURER -- 41 EXECUTIVE DIRECTOR -- DELEGATION OF POWER -- SURETY BOND AND CONFLICT OF 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 5 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- 6 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 7 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. 8 1 67-8909. DEVELOPMENT, ACQUISITION AND CONSTRUCTION OF FACILITIES. (1) The 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. 34 67-8911. SALE OF ELECTRICITY, PRODUCT OR SERVICE FROM FACILITIES -- RATES 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: 9 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. 32 67-8912. COST RECOVERY AND RATE STABILIZATION CHARGES OF PARTICIPATING 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 10 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. 24 67-8913. COOPERATION WITH OTHER AGENCIES AND SUBDIVISIONS. The authority 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. 37 67-8915. ISSUANCE OF BONDS TO FINANCE FACILITIES AND LOANS. (1) The 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; 11 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 12 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 13 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 14 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- 15 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. 19 67-8922. EXEMPTION OF REAL PROPERTY OF AUTHORITY FROM LEVY AND SALE BY 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- 16 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 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 growth. 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. Contact 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