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H0032aaS..............................by ENVIRONMENT, ENERGY AND TECHNOLOGY ENERGY RESOURCES AUTHORITY - Amends existing law to allow the Idaho Energy Resources Authority to manage and operate distribution facilities; to provide conditions when the authority or an agent may operate a facility; to provide provisions for a contract; and to allow the State Treasurer to invest in fixed or variable rate bonds of the authority so long as such bonds are not less than investment grade. 01/19 House intro - 1st rdg - to printing 01/22 Rpt prt - to Env 01/25 Rpt out - rec d/p - to 2nd rdg 01/26 2nd rdg - to 3rd rdg 01/31 3rd rdg - PASSED - 66-0-4 AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Mr. Speaker NAYS -- None Absent and excused -- Block, Nielsen, Roberts, Wood(35) Floor Sponsor - Anderson Title apvd - to Senate 02/01 Senate intro - 1st rdg - to St Aff 02/15 Rpt out - to 14th Ord 02/26 Rpt out amen - to 1st rdg as amen 02/27 1st rdg - to 2nd rdg as amen 02/28 2nd rdg - to 3rd rdg as amen 03/01 3rd rdg as amen - PASSED - 34-0-1 AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett, Cameron, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk NAYS -- None Absent and excused -- Coiner Floor Sponsor - McKenzie Title apvd - to House 03/05 House concurred in Senate amens - to engros 03/06 Rpt engros - 1st rdg - to 2nd rdg as amen 03/07 2nd rdg - to 3rd rdg as amen 03/09 3rd rdg as amen - PASSED - 67-0-3 AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Snodgrass, Stevenson, Thayn, Vander Woude, Wills, Wood(27), Mr. Speaker NAYS -- None Absent and excused -- Smith(24), Trail, Wood(35) Floor Sponsor - Anderson Title apvd - to enrol 03/12 Rpt enrol - Sp signed 03/13 Pres signed 03/14 To Governor 03/20 Governor signed Session Law Chapter 107 Effective: 03/20/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 32 BY ENVIRONMENT, ENERGY AND TECHNOLOGY COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO ENERGY RESOURCES AUTHORITY; AMENDING SECTION 67-8903, 3 IDAHO CODE, TO FURTHER DEFINE THE TERM "FACILITY"; AMENDING SECTION 4 67-8910, IDAHO CODE, TO PROVIDE THAT THE AUTHORITY MAY MANAGE AND OPERATE 5 FACILITIES UNDERTAKEN BY IT TO BE MANAGED AND OPERATED ON ITS BEHALF BY 6 ONE OR MORE QUALIFIED PARTICIPATING UTILITIES; AMENDING SECTION 67-8922, 7 IDAHO CODE, TO ALLOW THE STATE TREASURER TO INVEST IN FIXED OR VARIABLE 8 RATE BONDS OF THE AUTHORITY SO LONG AS THE BONDS ARE NOT LESS THAN INVEST- 9 MENT GRADE AND ARE NOT BEYOND A CERTAIN TERM; AND DECLARING AN EMERGENCY. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 67-8903, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 67-8903. DEFINITIONS. When used in this chapter, the following terms 14 shall have the following meanings: 15 (1) "Authority" means the Idaho energy resources authority created pursu- 16 ant to section 67-8904, Idaho Code. 17 (2) "Board" means the board of directors of the authority. 18 (3) "Bonds" means any bonds, notes, certificates or other obligations or 19 evidences of indebtedness issued by the authority. 20 (4) "Commission" means the Idaho public utilities commission created pur- 21 suant to section 61-201, Idaho Code. 22 (5) "Electric cooperative" means a cooperative corporation or association 23 which is: 24 (a) Organized under the provisions of section 501(c)(12) or 1381 of the 25 Internal Revenue Code; 26 (b) Is an Idaho nonprofit corporation pursuant to chapter 3, title 30, 27 Idaho Code; and 28 (c) Is an operating entity or successor entity thereof which owns facili- 29 ties and provides electric service to customers in Idaho as of the effec- 30 tive date of this chapter. 31 (6) "Facility" means any facility necessary, used or useful in connection 32 with the generation,ortransmission or distribution of electric power and 33 energy and any renewable energy generation project, in each case including, 34 but not limited to, all real and personal property, fuel supplies and trans- 35 portation facilities, pollution control facilities and all equipment and 36 improvements necessary or desirable in connection with a facility. "Facility" 37 shall include facilities owned in whole or in part by the authority or a par- 38 ticipating utility, including undivided ownership interests in facilities, 39 leasehold interests in facilities and other estates, but excludes a generating 40 facility that sells any portion of its output as a qualifying facility to a 41 participating utility under provisions of the public utility regulatory poli- 42 cies act of 1978, 16 U.S.C. section 2601 et seq. 43 (7) "Independent power producer" means any public or private corporation 2 1 which is not itself a participating utility, but which may be an affiliate of 2 a participating utility, that develops any renewable energy generation project 3 undertaken by the authority pursuant to this chapter. 4 (8) "Participating utility" means, with respect to any facilities under- 5 taken by the authority pursuant to this chapter, any public or private corpo- 6 ration, electric cooperative or other cooperative corporation or association, 7 municipal corporation, political subdivision of this state or another state, 8 state or federal agency, joint operating entity or other entity that: 9 (a) Owns and operates an electric utility system that provides electric 10 services to consumers of electricity located in an existing service area 11 within the boundaries of this state; 12 (b) Provides electric generation, power supply, transmission and/or 13 ancillary and related services at wholesale to one (1) or more participat- 14 ing utilities described in paragraph (a) of this subsection; or 15 (c) Is organized or operates as a regional transmission organization cov- 16 ering all or any part of the state of Idaho and one (1) or more other 17 states. 18 (9) "Renewable energy" means a source of energy that occurs naturally, is 19 regenerated naturally or uses as a fuel source, a waste product or byproduct 20 from a manufacturing process including, but not limited to, open or closed- 21 loop biomass, fuel cells, geothermal energy, waste heat, cogeneration, solar 22 energy, waterpower and wind. 23 (10) "Renewable energy generation project" means an electric generating 24 facility or system that uses renewable energy as its primary source of energy 25 to generate electricity. 26 (11) "Revenues" means all receipts, purchase payments, loan repayments, 27 lease payments, rents, fees and charges, and all other income or receipts 28 derived by the authority from a participating utility. 29 SECTION 2. That Section 67-8910, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 67-8910. MANAGEMENT AND OPERATION OF FACILITIES. The authority shall man- 32 age and operate or cause any facilities undertaken by it to be managed and 33 operated on its behalf by one (1) or more qualified participating utilities, 34 or if no participating utility is qualified, willing or able to manage and 35 operate such facility, by an agent so designated by the authority capable and 36 skilled in the management and operation of such a facility. The authority 37 shall enter into joint operating arrangements with participating utilities, 38 designated agents of the authority or others and may enter into any and all 39 contractual arrangements determined by the authority to promote the effective 40 and efficient management and operation of its facilities. 41 SECTION 3. That Section 67-8922, Idaho Code, be, and the same is hereby 42 amended to read as follows: 43 67-8922. AUTHORITY OBLIGATIONS ARE LEGAL INVESTMENTS. (1) The bonds of 44 the authority shall be legal investments in which all public officers and pub- 45 lic bodies of this state, its political subdivisions, all municipalities and 46 municipal subdivisions, all insurance companies and associations and other 47 persons carrying on an insurance business, all banks, bankers, banking associ- 48 ations, trust companies, savings banks and savings associations, including 49 savings and loan associations, building and loan associations, investment com- 50 panies and other persons carrying on a banking business, all administrators, 51 guardians, executors, trustees and other fiduciaries, and all other persons 3 1 whatsoever who are now or may hereafter be authorized to invest in bonds or in 2 other obligations of the state, may properly and legally invest funds, includ- 3 ing capital, in their control or belonging to them. The bonds are also hereby 4 made securities which may properly and legally be deposited with and received 5 by all public officers and bodies of the state or any agency or political sub- 6 divisions of the state and all municipalities and public corporations for any 7 purpose for which the deposit of bonds or other obligations of the state is 8 now or may hereafter be authorized by law. 9 (2) In addition to the investments permitted under chapter 12, title 67, 10 Idaho Code, and notwithstanding any limitations on investments contained in 11 that chapter, the state treasurer is authorized and empowered to invest state 12 funds or any other funds in his hands in fixed or variable rate bonds of the 13 authority and to enter into agreements with the authority in connection with 14 any such investment, so long as the term of the investment does not exceed 15 thirty (30) years and the quality of the underlying credit, or the underlying 16 credit as enhanced, is not less than investment grade. 17 SECTION 4. An emergency existing therefor, which emergency is hereby 18 declared to exist, this act shall be in full force and effect on and after its 19 passage and approval.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007Moved by Davis Seconded by Stegner IN THE SENATE SENATE AMENDMENT TO H.B. NO. 32 1 AMENDMENT TO SECTION 2 2 On page 2 of the printed bill, delete lines 31 through 40 and insert: 3 "67-8910. MANAGEMENT AND OPERATION OF FACILITIES. The authority shall 4 cause any facilities undertaken by it to be managed and operated on its behalf 5 by one (1) or more qualified participating utilities, or if no participating 6 utility is qualified, willing or able to manage and operate such facility, by 7 the authority or by an agent so designated by the authority capable and 8 skilled in the management and operation of such a facility. The authority 9 shall enter into joint operating arrangements with participating utilities, 10 designated agents of the authority or others and may enter into any and all 11 contractual arrangements determined by the authority to promote the effective 12 and efficient management and operation of its facilities. The authority shall 13 not commence the management or operation for any facility until it shall have 14 entered into contractual arrangements with one (1) or more participating util- 15 ities that contain provisions acceptable to both the authority and the partic- 16 ipating utility or utilities and which are determined by the authority to pro- 17 vide adequate assurance that all management, operating, maintenance and 18 related costs of the facility will be paid by or provided for by one (1) or 19 more participating utilities.". 20 CORRECTION TO TITLE 21 On page 1, delete lines 4 through 6 and insert: "67-8910, IDAHO CODE, TO 22 PROVIDE CONDITIONS WHEN THE AUTHORITY OR AN AGENT MAY OPERATE A FACILITY AND 23 TO PROVIDE PROVISIONS FOR A CONTRACT; AMENDING SECTION 67-8922,". 2 Moved by Little Seconded by Davis IN THE SENATE SENATE AMENDMENT TO H.B. NO. 32 1 AMENDMENT TO THE BILL 2 On page 2 of the printed bill, following line 40, insert: 3 "SECTION 3. That Section 67-8921, Idaho Code, be, and the same is hereby 4 amended to read as follows: 5 67-8921. ANNUAL REPORT. The authority shall submit to the governor and to 6 the legislature within ninety (90) days after the end of its fiscal year a 7 complete and detailed report setting forth: 8 (1) Its operations and accomplishments; 9 (2) An accounting of its receipts and expenditures during such fiscal 10 year in accordance with the categories or classifications established by the 11 authority for its operating and capital outlay purposes; 12 (3) Its assets and liabilities at the end of its fiscal year, including 13 the status of reserve, special or other funds;and14 (4) A schedule of its bonds outstanding at the end of its fiscal year, 15 together with a statement of the amounts redeemed and incurred during such 16 fiscal year; and 17 (5) Any new or additional facility management and operation activities.". 18 Also on page 2, in line 41, delete "SECTION 3" and insert: "SECTION 4"; and on 19 page 3, in line 17, delete "SECTION 4" and insert: "SECTION 5". 20 CORRECTION TO TITLE 21 On page 1, in line 6, following "UTILITIES;" insert: "AMENDING SECTION 22 67-8921, IDAHO CODE, TO PROVIDE THAT THE AUTHORITY'S ANNUAL REPORT SHALL BE 23 SUBMITTED TO THE LEGISLATURE, AND SHALL CONTAIN ANY NEW OR ADDITIONAL FACILITY 24 MANAGEMENT AND OPERATION ACTIVITIES;".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 32, As Amended in the Senate BY ENVIRONMENT, ENERGY AND TECHNOLOGY COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO ENERGY RESOURCES AUTHORITY; AMENDING SECTION 67-8903, 3 IDAHO CODE, TO FURTHER DEFINE THE TERM "FACILITY"; AMENDING SECTION 4 67-8910, IDAHO CODE, TO PROVIDE CONDITIONS WHEN THE AUTHORITY OR AN AGENT 5 MAY OPERATE A FACILITY AND TO PROVIDE PROVISIONS FOR A CONTRACT; AMENDING 6 SECTION 67-8921, IDAHO CODE, TO PROVIDE THAT THE AUTHORITY'S ANNUAL REPORT 7 SHALL BE SUBMITTED TO THE LEGISLATURE, AND SHALL CONTAIN ANY NEW OR ADDI- 8 TIONAL FACILITY MANAGEMENT AND OPERATION ACTIVITIES; AMENDING SECTION 9 67-8922, IDAHO CODE, TO ALLOW THE STATE TREASURER TO INVEST IN FIXED OR 10 VARIABLE RATE BONDS OF THE AUTHORITY SO LONG AS THE BONDS ARE NOT LESS 11 THAN INVESTMENT GRADE AND ARE NOT BEYOND A CERTAIN TERM; AND DECLARING AN 12 EMERGENCY. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Section 67-8903, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 67-8903. DEFINITIONS. When used in this chapter, the following terms 17 shall have the following meanings: 18 (1) "Authority" means the Idaho energy resources authority created pursu- 19 ant to section 67-8904, Idaho Code. 20 (2) "Board" means the board of directors of the authority. 21 (3) "Bonds" means any bonds, notes, certificates or other obligations or 22 evidences of indebtedness issued by the authority. 23 (4) "Commission" means the Idaho public utilities commission created pur- 24 suant to section 61-201, Idaho Code. 25 (5) "Electric cooperative" means a cooperative corporation or association 26 which is: 27 (a) Organized under the provisions of section 501(c)(12) or 1381 of the 28 Internal Revenue Code; 29 (b) Is an Idaho nonprofit corporation pursuant to chapter 3, title 30, 30 Idaho Code; and 31 (c) Is an operating entity or successor entity thereof which owns facili- 32 ties and provides electric service to customers in Idaho as of the effec- 33 tive date of this chapter. 34 (6) "Facility" means any facility necessary, used or useful in connection 35 with the generation,ortransmission or distribution of electric power and 36 energy and any renewable energy generation project, in each case including, 37 but not limited to, all real and personal property, fuel supplies and trans- 38 portation facilities, pollution control facilities and all equipment and 39 improvements necessary or desirable in connection with a facility. "Facility" 40 shall include facilities owned in whole or in part by the authority or a par- 41 ticipating utility, including undivided ownership interests in facilities, 42 leasehold interests in facilities and other estates, but excludes a generating 43 facility that sells any portion of its output as a qualifying facility to a 2 1 participating utility under provisions of the public utility regulatory poli- 2 cies act of 1978, 16 U.S.C. section 2601 et seq. 3 (7) "Independent power producer" means any public or private corporation 4 which is not itself a participating utility, but which may be an affiliate of 5 a participating utility, that develops any renewable energy generation project 6 undertaken by the authority pursuant to this chapter. 7 (8) "Participating utility" means, with respect to any facilities under- 8 taken by the authority pursuant to this chapter, any public or private corpo- 9 ration, electric cooperative or other cooperative corporation or association, 10 municipal corporation, political subdivision of this state or another state, 11 state or federal agency, joint operating entity or other entity that: 12 (a) Owns and operates an electric utility system that provides electric 13 services to consumers of electricity located in an existing service area 14 within the boundaries of this state; 15 (b) Provides electric generation, power supply, transmission and/or 16 ancillary and related services at wholesale to one (1) or more participat- 17 ing utilities described in paragraph (a) of this subsection; or 18 (c) Is organized or operates as a regional transmission organization cov- 19 ering all or any part of the state of Idaho and one (1) or more other 20 states. 21 (9) "Renewable energy" means a source of energy that occurs naturally, is 22 regenerated naturally or uses as a fuel source, a waste product or byproduct 23 from a manufacturing process including, but not limited to, open or closed- 24 loop biomass, fuel cells, geothermal energy, waste heat, cogeneration, solar 25 energy, waterpower and wind. 26 (10) "Renewable energy generation project" means an electric generating 27 facility or system that uses renewable energy as its primary source of energy 28 to generate electricity. 29 (11) "Revenues" means all receipts, purchase payments, loan repayments, 30 lease payments, rents, fees and charges, and all other income or receipts 31 derived by the authority from a participating utility. 32 SECTION 2. That Section 67-8910, Idaho Code, be, and the same is hereby 33 amended to read as follows: 34 67-8910. MANAGEMENT AND OPERATION OF FACILITIES. The authority shall 35 cause any facilities undertaken by it to be managed and operated on its behalf 36 by one (1) or more qualified participating utilities, or if no participating 37 utility is qualified, willing or able to manage and operate such facility, by 38 the authority or by an agent so designated by the authority capable and 39 skilled in the management and operation of such a facility. The authority 40 shall enter into joint operating arrangements with participating utilities, 41 designated agents of the authority or others and may enter into any and all 42 contractual arrangements determined by the authority to promote the effective 43 and efficient management and operation of its facilities. The authority shall 44 not commence the management or operation for any facility until it shall have 45 entered into contractual arrangements with one (1) or more participating util- 46 ities that contain provisions acceptable to both the authority and the partic- 47 ipating utility or utilities and which are determined by the authority to pro- 48 vide adequate assurance that all management, operating, maintenance and 49 related costs of the facility will be paid by or provided for by one (1) or 50 more participating utilities. 51 SECTION 3. That Section 67-8921, Idaho Code, be, and the same is hereby 52 amended to read as follows: 3 1 67-8921. ANNUAL REPORT. The authority shall submit to the governor and to 2 the legislature within ninety (90) days after the end of its fiscal year a 3 complete and detailed report setting forth: 4 (1) Its operations and accomplishments; 5 (2) An accounting of its receipts and expenditures during such fiscal 6 year in accordance with the categories or classifications established by the 7 authority for its operating and capital outlay purposes; 8 (3) Its assets and liabilities at the end of its fiscal year, including 9 the status of reserve, special or other funds;and10 (4) A schedule of its bonds outstanding at the end of its fiscal year, 11 together with a statement of the amounts redeemed and incurred during such 12 fiscal year; and 13 (5) Any new or additional facility management and operation activities. 14 SECTION 4. That Section 67-8922, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 67-8922. AUTHORITY OBLIGATIONS ARE LEGAL INVESTMENTS. (1) The bonds of 17 the authority shall be legal investments in which all public officers and pub- 18 lic bodies of this state, its political subdivisions, all municipalities and 19 municipal subdivisions, all insurance companies and associations and other 20 persons carrying on an insurance business, all banks, bankers, banking associ- 21 ations, trust companies, savings banks and savings associations, including 22 savings and loan associations, building and loan associations, investment com- 23 panies and other persons carrying on a banking business, all administrators, 24 guardians, executors, trustees and other fiduciaries, and all other persons 25 whatsoever who are now or may hereafter be authorized to invest in bonds or in 26 other obligations of the state, may properly and legally invest funds, includ- 27 ing capital, in their control or belonging to them. The bonds are also hereby 28 made securities which may properly and legally be deposited with and received 29 by all public officers and bodies of the state or any agency or political sub- 30 divisions of the state and all municipalities and public corporations for any 31 purpose for which the deposit of bonds or other obligations of the state is 32 now or may hereafter be authorized by law. 33 (2) In addition to the investments permitted under chapter 12, title 67, 34 Idaho Code, and notwithstanding any limitations on investments contained in 35 that chapter, the state treasurer is authorized and empowered to invest state 36 funds or any other funds in his hands in fixed or variable rate bonds of the 37 authority and to enter into agreements with the authority in connection with 38 any such investment, so long as the term of the investment does not exceed 39 thirty (30) years and the quality of the underlying credit, or the underlying 40 credit as enhanced, is not less than investment grade. 41 SECTION 5. An emergency existing therefor, which emergency is hereby 42 declared to exist, this act shall be in full force and effect on and after its 43 passage and approval.
STATEMENT OF PURPOSE RS 16671 Amending the Idaho Energy Resources Authority Act The Idaho Energy Resources Authority (IERA) was created in 2005 to provide a lower cost financing alternative to Idaho utilities building generation and transmission infrastructure. This bill provides three technical changes to that IERA Act. The first change adds the word "distribution" to the Act so that the IERA can also finance electric distribution facilities for utilities. The second amendment would allow the IERA to "operate or manage" the electric facilities it finances or owns. A number of Idaho consumer-owned utilities (municipalities or electric cooperatives) want to participate in the development of one or more generation or transmission projects, including a large Utah power plant. These utilities would like the option to defer their management and operational authority to the IERA in such circumstances. The IERA also envisions other situations where participating utilities would also request that the IERA function in an operation and management role of jointly developed assets. The last change to the IERA Act simply authorizes the state treasurer to purchase either fixed or variable rate bonds of the IERA, at his discretion, provided such bonds are investment grade. Treasurer Ron Crane has expressed support for this added provision to the IERA Act. Such a provision will make small bond issuances of the IERA more cost effective. FISCAL IMPACT This legislation will have no fiscal impact on the state. While an instrumentality of the state, the IERA is a self-sustaining entity and all administrative costs of the Authority are paid by the utilities financing facilities through the IERA. CONTACTS & SPONSORS Senator Bart Davis Senator Curt McKenzie Representative George Eskridge Representative Eric Anderson Ron Williams Attorney at Law 344-6633 Ken Harward Association of Idaho Cities 344-8594 H 32