Energy bill advances out of Iowa House Commerce Committee

The Iowa House Commerce Committee voted to approve an energy bill that would, among other things, give utility companies the right of first refusal at new transmission projects. 

House Study Bill 123 was proposed by the governor and, in line with her energy plans for the state, would advance nuclear energy, give the Iowa Department of Natural Resources the authority to regulate anaerobic digesters, grant ROFR and create requirements for advanced ratemaking.

Sixteen representatives voted in favor of the bill, with six opposing it. 

Rep. Kenan Judge, D-Waukee, said he appreciates the years of work that have gone into the bill, but voted no on the bill and voiced a need for minor adjustments that would put the ratepayer “more in the forefront” of the bill. 

Governor’s energy bill advances

“I hope that we can make some changes and I’ll be a ‘yes’ on the floor,” Judge said.

Despite past legislative disagreements on right of first refusal policy, which prioritizes incumbent utility companies in the construction of new transmission lines and that opponents consider anticompetitive, representatives in the subcommittee did not discuss the ROFR section of the bill. 

The bill passed with an amendment to remove language from the first section of the bill, pertaining to disputed utility territories. 

Rep. Shannon Lundgren, R-Peosta, said the bill will have some additional amendments, including tweaking the language surrounding anaerobic digesters and to make clear that the bill is not related to the approval or disapproval of carbon dioxide pipelines. 

Lundgren said the bill will have to go through the appropriations committee, which will not be affected by the upcoming funnel deadline and gives the committee more time to work on the bill before it goes to the floor. The so-called “funnel” is a self-imposed legislative deadline for policy bills to clear a House or Senate committee. Appropriations bills are exempt.

“I think this will be a bipartisan bill when we finally get to the floor this year,” Lundgren said in her closing statements on the bill. “We have the rate payer at the front of everything that we do here — we need just and reasonable rates in the state of Iowa.”