2007 Legislation
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HOUSE BILL NO. 32 – Energy resources authority/facility

HOUSE BILL NO. 32

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN 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, or transmission 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.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                                     Moved 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; and
 14        (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;".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN 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,  or  transmission 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; and
 10        (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 / Fiscal Impact



                        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

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