View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
S1192......................................................by STATE AFFAIRS RENEWABLE ENERGY PROJECTS - BONDS - Amends and adds to existing law as a "Trailer Bill" to House Bill No. 106 to authorize the Idaho Energy Resources Authority to undertake any renewable energy generation project for the benefit of one or more independent power producer and may issue its bonds to finance their costs. 03/14 Senate intro - 1st rdg - to printing 03/15 Rpt prt - to St Aff 03/21 Rpt out - rec d/p - to 2nd rdg 03/22 2nd rdg - to 3rd rdg 03/23 3rd rdg - PASSED - 34-0-0, 1 vacancy AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- (District 21 seat vacant) Floor Sponsor - Hill Title apvd - to House 03/24 House intro - 1st rdg - to Env 03/29 Rpt out - rec d/p - to 2nd rdg 03/30 2nd rdg - to 3rd rdg Rls susp - PASSED - 66-0-4 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wood, Mr. Speaker NAYS -- None Absent and excused -- Bedke, Roberts, Stevenson, Wills Floor Sponsors - Eskridge & Anderson Title apvd - to Senate 03/30 To enrol - Rpt enrol - Pres signed 03/31 Sp signed - To Governor 04/06 Governor signed Session Law Chapter 311 Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE SENATE SENATE BILL NO. 1192 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO ENERGY RESOURCES AUTHORITY ACT; AMENDING SECTION 3 67-8902, IDAHO CODE, AS ADDED BY SECTION 1, HOUSE BILL NO. 106, ENACTED BY 4 THE FIRST REGULAR SESSION OF THE FIFTY-EIGHTH IDAHO LEGISLATURE, TO PRO- 5 VIDE FURTHER DECLARATION OF NECESSITY AND PURPOSE; AMENDING SECTION 6 67-8903, IDAHO CODE, AS ADDED BY SECTION 1, HOUSE BILL NO. 106, ENACTED BY 7 THE FIRST REGULAR SESSION OF THE FIFTY-EIGHTH IDAHO LEGISLATURE, TO FUR- 8 THER DEFINE TERMS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 9 67-8908, IDAHO CODE, AS ADDED BY SECTION 1, HOUSE BILL NO. 106, ENACTED BY 10 THE FIRST REGULAR SESSION OF THE FIFTY-EIGHTH IDAHO LEGISLATURE, TO PRO- 11 VIDE ADDITIONAL POWERS TO IDAHO ENERGY RESOURCES AUTHORITY; AMENDING 12 CHAPTER 89, TITLE 67, IDAHO CODE, AS ADDED BY SECTION 1, HOUSE BILL NO. 13 106, ENACTED BY THE FIRST REGULAR SESSION OF THE FIFTY-EIGHTH IDAHO LEGIS- 14 LATURE, BY THE ADDITION OF A NEW SECTION 67-8925, IDAHO CODE, TO AUTHORIZE 15 THE IDAHO ENERGY RESOURCES AUTHORITY TO UNDERTAKE ANY RENEWABLE ENERGY 16 PROJECT FOR THE BENEFIT OF ONE OR MORE INDEPENDENT POWER PRODUCERS AND 17 ISSUE ITS BONDS TO FINANCE THE COST THEREOF AND TO PROVIDE APPLICATION TO 18 AN INDEPENDENT POWER PRODUCER. 19 Be It Enacted by the Legislature of the State of Idaho: 20 SECTION 1. That Section 67-8902, Idaho Code, as added by Section 1, House 21 Bill No. 106, enacted by the First Regular Session of the Fifty-eighth Idaho 22 Legislature, be, and the same is hereby amended to read as follows: 23 67-8902. DECLARATION OF NECESSITY AND PURPOSE. (1) It is hereby deter- 24 mined and declared that: 25 (a) Industrial, irrigation, commercial and residential consumers in the 26 state of Idaho receive electric service from various investor-owned, coop- 27 erative and municipal utilities and the ability of these utilities to pro- 28 vide reliable and economic electric services at stable prices is essential 29 to the economy and the economic development of the state of Idaho and to 30 the health, safety and welfare of its people; 31 (b) The regional interconnection of electric utilities causes events and 32 conditions in other western states to have a significant impact of the 33 operations of utilities in the state of Idaho and the restructuring of the 34 electric industry in recent years by the federal government and in other 35 states has exposed all utilities in Idaho, and the consumers served by 36 them, to volatile market prices, reliability concerns and other adverse 37 conditions; 38 (c) It is in the best interest of the state of Idaho and its people that 39 sufficient and reliable electric generation and transmission resources are 40 developed and made available at cost-based rates in order to enable these 41 utilities to meet existing and future demands for electric services, to 42 provide adequate reserves and to promote reliability at the most stable 43 rates practicable; 2 1 (d) The electric utility and energy industries are and will continue to 2 be capital-intensive industries and the availability of cost-effective 3 financing to investor-owned, cooperative and municipal utilities will 4 enhance the ability of these utilities to provide and promote economic 5 electric services to consumers in the state; 6 (e) Coordination, cooperation and joint ventures between and among such 7 utilities with one another and with the private, cooperative, federal, 8 state and municipal utilities and agencies that provide wholesale and 9 retail electric services in the western states will promote regional elec- 10 tric reliability and stability and will provide economies of scale; and11 (f) It is the intent of the legislature to create the Idaho energy 12 resources authority to promote the development and financing of facilities 13 for the benefit of participating utilities and to accomplish the purposes 14 stated above, and to authorize the authority to exercise all such powers 15 as are necessary to enable it to achieve such purposes and to thereby pro- 16 mote and protect the economy of the state of Idaho and the health, safety 17 and welfare of its people; and 18 (g) It is in the best interest of the state of Idaho and its people to 19 encourage and promote the development of renewable energy resources in 20 order to develop sustainable sources of energy supply, reduce 21 inefficiencies in the use of electric energy and enhance the long-term 22 stability of the energy resources and requirements of the state. 23 (2) Nothing contained herein is intended or shall be construed to limit 24 or restrict the authority of the Idaho public utilities commission with 25 respect to the regulation of electric corporations and public utilities pursu- 26 ant to title 61, Idaho Code. 27 SECTION 2. That Section 67-8903, Idaho Code, as added by Section 1, House 28 Bill No. 106, enacted by the First Regular Session of the Fifty-eighth Idaho 29 Legislature, be, and the same is hereby amended to read as follows: 30 67-8903. DEFINITIONS. When used in this chapter, the following terms 31 shall have the following meanings: 32 (1) "Authority" means the Idaho energy resources authority created pursu- 33 ant to section 67-8904, Idaho Code. 34 (2) "Board" means the board of directors of the authority. 35 (3) "Bonds" means any bonds, notes, certificates or other obligations or 36 evidences of indebtedness issued by the authority. 37 (4) "Commission" means the Idaho public utilities commission created pur- 38 suant to section 61-201, Idaho Code. 39 (5) "Electric cooperative" means a cooperative corporation or association 40 which is: 41 (a) Organized under the provisions of section 501(c)(12) or 1381 of the 42 Internal Revenue Code; 43 (b) Is an Idaho nonprofit corporation pursuant to chapter 3, title 30, 44 Idaho Code; and 45 (c) Is an operating entity or successor entity thereof which owns facili- 46 ties and provides electric service to customers in Idaho as of the effec- 47 tive date of this chapter. 48 (6) "Facility" means any facility necessary, used or useful in connection 49 with the generation or transmission of electric power and energy and any 50 renewable energy generation project, in each case including, but not limited 51 to, all real and personal property, fuel supplies and transportation facili- 52 ties, pollution control facilities and all equipment and improvements neces- 53 sary or desirable in connection with a facility. "Facility" shall include 3 1 facilities owned in whole or in part by the authority or a participating util- 2 ity, including undivided ownership interests in facilities, leasehold inter- 3 ests in facilities and other estates, but excludes a generating facility that 4 sells any portion of its output as a qualifying facility to a participating 5 utility under provisions of the public utility regulatory policies act of 6 1978, 16 U.S.C. section 2601 et secseq. 7 (7) "Independent power producer" means any public or private corporation 8 which is not itself a participating utility, but which may be an affiliate of 9 a participating utility, that develops any renewable energy generation project 10 undertaken by the authority pursuant to this chapter. 11 (8) "Participating utility" means, with respect to any facilities under- 12 taken by the authority pursuant to this chapter, any public or private corpo- 13 ration, electric cooperative or other cooperative corporation or association, 14 municipal corporation, political subdivision of this state or another state, 15 state or federal agency, joint operating entity or other entity that: 16 (a) Owns and operates an electric utility system that provides electric 17 services to consumers of electricity located in an existing service area 18 within the boundaries of this state; 19 (b) Provides electric generation, power supply, transmission and/or 20 ancillary and related services at wholesale to one (1) or more participat- 21 ing utilities described in paragraph (a) of this subsection; or 22 (c) Is organized or operates as a regional transmission organization cov- 23 ering all or any part of the state of Idaho and one (1) or more other 24 states. 25 ( 89) "Renewable energy" means a source of energy that occurs naturally, 26 is regenerated naturally or uses as a fuel source, a waste product or byprod- 27 uct from a manufacturing process including, but not limited to, open or 28 closed-loop biomass, fuel cells, geothermal energy, waste heat, cogeneration, 29 solar energy, waterpower and wind. 30 (10) "Renewable energy generation project" means an electric generating 31 facility or system that uses renewable energy as its primary source of energy 32 to generate electricity. 33 (11) "Revenues" means all receipts, purchase payments, loan repayments, 34 lease payments, rents, fees and charges, and all other income or receipts 35 derived by the authority from a participating utility. 36 SECTION 3. That Section 67-8908, Idaho Code, as added by Section 1, House 37 Bill No. 106, enacted by the First Regular Session of the Fifty-eighth Idaho 38 Legislature, be, and the same is hereby amended to read as follows: 39 67-8908. POWERS. (1) The authority shall have the following powers, which 40 are hereby declared to be necessary to enable the authority to carry out and 41 effectuate the purposes and provisions of this chapter, together with all 42 powers incidental thereto or necessary for the performance thereof: 43 (a) To have perpetual succession as a body politic and corporate; 44 (b) To adopt bylaws for the regulation of its affairs and the conduct of 45 its business; 46 (c) To sue and be sued and to prosecute and defend, at law or in equity, 47 in any court having jurisdiction of the subject matter and of the parties; 48 (d) To have and to use a corporate seal and to alter the same at pleas- 49 ure; 50 (e) To maintain an office at such place or places as it may designate; 51 (f) To make and execute contracts and all other instruments necessary or 52 convenient for the exercise of its powers and functions under this chap- 53 ter; 4 1 (g) To acquire, whether by purchase, gift, grant, bequest, devise, 2 exchange, eminent domain or otherwise, own, hold, improve, lease, trans- 3 fer, assign, pledge and dispose of, any real or personal property or any 4 interest therein necessary or convenient in connection with any facility 5 or its purposes under this chapter; provided however, that the power of 6 eminent domain is limited to only those purposes and participating utili- 7 ties as authorized by section 7-701, Idaho Code; 8 (h) To acquire, construct, reconstruct, renovate, improve, replace, main- 9 tain, repair, manage, operate, lease as lessee or lessor, and regulate any 10 facility; to enter into contracts for any and all of such purposes and for 11 the acquisition and management of fuel supplies, provided such is reason- 12 ably necessary for the operation and maintenance of any facility; to enter 13 into contracts and agreements to manage risks associated with the purchase 14 and sale of energy and energy commodities, provided such is reasonably 15 necessary for the operation and maintenance of any facility; and shall 16 designate one (1) or more qualified participating utilities as agent or 17 agents of the authority, as agreed to among the participating utilities, 18 with respect to the foregoing; 19 (i) To sell, lease or otherwise provide by contract to one (1) or more 20 participating utilities the services, output or product provided by any or 21 all of the facilities undertaken by the authority upon such terms and con- 22 ditions as the authority and the participating utilities shall deem 23 proper, and to establish, charge, collect and revise from time to time 24 such rents, fees and charges for such services, output or product as pro- 25 vided for in this chapter; 26 (j) To borrow money and to issue bonds for any of the purposes described 27 in this chapter, to issue refunding bonds and to enter into contracts and 28 agreements determined by the authority to be necessary or desirable to 29 manage its debt service and interest costs; 30 (k) To establish rules and regulations for the use of facilities and to 31 designate a participating utility as its agent, to establish rules and 32 regulations for the use of the facilities undertaken or operated by such 33 participating utility; 34 (l) To employ or contract for consulting engineers, architects, attor- 35 neys, accountants, construction and financial experts, superintendents, 36 managers, and such other employees and agents as may be necessary in its 37 judgment and to fix their compensation; 38 (m) To enter into contracts, agreements or other transactions with and 39 accept grants and the cooperation of the United States or any agency 40 thereof or any state or any agency or governmental subdivision thereof, in 41 furtherance of the purposes of this chapter including, but not limited to, 42 the development, maintenance, operation, and financing of any facility and 43 to do any and all things necessary in order to avail itself of such aid 44 and cooperation; 45 (n) To receive and accept aid or contributions from any source of money, 46 property, labor, or other things of value, to be held, used, and applied 47 to carry out the purposes of this chapter subject to such conditions upon 48 which such grants and contributions may be made, including, but not lim- 49 ited to, gifts or grants from any department or agency of the United 50 States or any state for any purpose consistent with this chapter; 51 (o) To assign and pledge all or any part of its revenues and income and 52 to mortgage or otherwise encumber any or all of its facilities and the 53 site or sites thereof, whether then owned or thereafter acquired, for the 54 benefit and security of the holders of bonds issued to finance such facil- 55 ities or any portion thereof; 5 1 (p) To make loans to any participating utility to finance the cost of any 2 facilities in accordance with an agreement between the authority and such 3 participating utility; 4 (q) To make secured or unsecured loans to a participating utility to 5 refinance obligations and indebtedness incurred for facilities undertaken 6 and completed prior to or after the enactment of this chapter when the 7 authority finds that such financing is in the public interest and either 8 alleviates the financial hardship upon the participating utility or is in 9 connection with other financing by the authority for such participating 10 utility or may be expected to result in a cost-effective delivery of elec- 11 tricity to the consumers served by the participating utility, or any com- 12 bination thereof; 13 (r) To charge to and equitably apportion its administrative costs and 14 expenses incurred in the exercise of the powers and duties conferred by 15 this chapter among the participating utilities that have entered into con- 16 tracts with the authority; 17 (s) To procure insurance against any loss in connection with its property 18 and other assets in such amounts and from such insurers as it deems desir- 19 able and to self-insure against such risks as it shall deem to be reason- 20 able; 21 (t) To invest any funds not needed for immediate use or disbursement, 22 including any funds held in reserve, in: 23 (i) Bonds, notes and other obligations of the United States or any 24 agency or instrumentality thereof and other securities secured by 25 such bonds, notes or other obligations; 26 (ii) Money market funds which are insured or the assets of which are 27 limited to obligations of the United States or any agency or instru- 28 mentality thereof; 29 (iii) Time certificates of deposit and savings accounts; 30 (iv) Commercial paper which, at the time of its purchase, is rated 31 in the highest category by a nationally recognized rating service; 32 (v) Property or securities in which the state treasurer may invest 33 funds in the state treasury pursuant to section 67-1210, Idaho Code; 34 and 35 (vi) With respect to any funds representing bond proceeds or amounts 36 pledged to the payment of bonds, such other investments as may be 37 specified in a bond resolution or trust indenture securing bonds of 38 the authority; 39 (u) To participate in cooperative ventures with any agencies or organiza- 40 tions in order to provide affordable and reliable energy to the residents 41 of the state; and42 (v) To undertake and finance renewable energy generation projects devel- 43 oped by an independent power producer; and 44 (w) To do all things necessary and convenient to carry out the purposes 45 of this chapter. 46 (2) Notwithstanding any other provision of this chapter, the authority 47 shall have no power to: 48 (a) Acquire the operating property of any investor-owned, private, coop- 49 erative, municipal or other utility by the exercise of the power of emi- 50 nent domain; 51 (b) Provide financing for the acquisition of the operating property of 52 any such utility by or under threat of eminent domain, in either case 53 unless such utility consents in writing to the acquisition; or 54 (c) Deliver retail electricity or related retail products or services to 55 any ultimate consumer, whether in violation of the Idaho electric supplier 6 1 stabilization act or otherwise. 2 SECTION 4. That Chapter 89, Title 67, Idaho Code, as added by Section 1, 3 House Bill No. 106, enacted by the First Regular Session of the Fifty-eighth 4 Idaho Legislature, be, and the same is hereby amended by the addition thereto 5 of a NEW SECTION, to be known and designated as Section 67-8925, Idaho Code, 6 and to read as follows: 7 67-8925. RENEWABLE ENERGY GENERATION PROJECTS. The authority may under- 8 take any renewable energy generation project for the benefit of one (1) or 9 more independent power producers and may issue its bonds to finance the cost 10 thereof, all to the same extent and subject to the same provisions applicable 11 to the undertaking and financing of other facilities for the benefit of one 12 (1) or more participating utilities. In furtherance of the foregoing, an inde- 13 pendent power producer shall be deemed to be a participating utility with 14 respect to a renewable energy generation project for purposes of sections 15 67-8909, 67-8910 and 67-8911, Idaho Code.
STATEMENT OF PURPOSE RS 14977 Amendment to the Idaho Energy Resources Authority Act. House Bill 106 creates the Idaho Energy Resources Authority to finance the construction of electric generation and transmission projects by electric utilities. This proposed legislation acts as a "trailer bill" or amendment to H 106 so that independent (non-utility) developers of renewable energy projects may also request financing from the Idaho Energy Resources Authority. House Bill 30, the original bill creating the Idaho Energy Resources Authority, combined the financing of both generation and transmission facilities and renewable energy facilities. Sponsors of the proposed Act believed that renewable energy project financing by independent developers needed to be contained in a bill separate from utility financing of generation and transmission facilities. FISCAL IMPACT This legislation will have no fiscal impact on the state. Contact Name: Representative George Eskridge Representative Eric Anderson Senator Brent Hill Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE S 1192