House File 2166 - Introduced HOUSE FILE 2166 BY ISENHART , ANDERSON , GASKILL , KELLEY , RIDING , FORBES , STAED , WESSEL-KROESCHELL , PRICHARD , HANSON , KAJTAZOVIC , STECKMAN , WINCKLER , and LENSING A BILL FOR An Act requiring a specified percentage of alternate energy 1 purchase requirements to be derived from solar energy. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5597YH (3) 85 rn/nh

H.F. 2166 Section 1. Section 476.44, subsection 2, Code 2014, is 1 amended to read as follows: 2 2. a. An electric utility subject to this division , except 3 a utility that elects rate regulation pursuant to section 4 476.1A , shall not be required to own or purchase, at any one 5 time, more than its share of one hundred five megawatts of 6 power from alternative alternate energy production facilities 7 or small hydro facilities at the rates established pursuant to 8 section 476.43 . The board shall allocate the one hundred five 9 megawatts based upon each utility’s percentage of the total 10 Iowa retail peak demand, for the year beginning January 1, 11 1990, of all utilities subject to this section . Twenty-five 12 percent of an electric utility’s share as determined and 13 allocated pursuant to this paragraph shall be derived through 14 the ownership of, or purchase of alternate energy from, a 15 solar energy facility. If a utility undergoes reorganization 16 as defined in section 476.76 , the board shall combine the 17 allocated purchases of power for each utility involved in the 18 reorganization. 19 b. Notwithstanding the one hundred five megawatt maximum, 20 the board may increase the amount of power that a utility 21 is required to own or purchase at the rates established 22 pursuant to section 476.43 if the board finds that a utility, 23 including a reorganized utility, exceeds its 1990 Iowa 24 retail peak demand by twenty percent and the additional 25 power the utility is required to purchase will encourage the 26 development of alternate energy production facilities and 27 small hydro facilities. The increase shall not exceed the 28 utility’s increase in peak demand multiplied by the ratio of 29 the utility’s share of the one hundred five megawatt maximum 30 to its 1990 Iowa retail peak demand. If the board increases 31 the amount of power a utility is required to own or purchase 32 pursuant to this paragraph, the twenty-five percent solar 33 energy ownership or purchase requirement specified in paragraph 34 “a” shall be applicable to the increased amount. 35 -1- LSB 5597YH (3) 85 rn/nh 1/ 2

H.F. 2166 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to alternate energy purchase requirements 4 imposed upon electric utilities by the Iowa utilities board. 5 Currently, electric utilities are required to own alternate 6 energy production facilities or small hydro facilities located 7 in Iowa, or to enter into long-term contracts to purchase or 8 wheel electricity from such facilities. Alternate energy 9 production facilities are defined in Code section 476.42 10 to include solar, wind turbine, waste management, resource 11 recovery, refuse-derived fuel, agricultural crops or residues, 12 or woodburning facilities. 13 There is a limitation on the amount of electricity required 14 to be produced by a facility which is owned by an electric 15 utility, or purchased or wheeled from an alternate energy 16 production facility or small hydro facility. An electric 17 utility is not required to own or purchase, at any one time, 18 more than its share of 105 megawatts of power from alternate 19 energy production facilities or small hydro facilities. The 20 bill provides that 25 percent of an electric utility’s share 21 shall be derived through the ownership of, or purchase of 22 alternate energy from, a solar energy facility, and that if 23 the board increases the amount of power a utility is required 24 to own or purchase, the 25 percent solar energy ownership or 25 purchase requirement shall be applicable to the increased 26 amount. 27 -2- LSB 5597YH (3) 85 rn/nh 2/ 2