HF 518 (LSB 2539YH (2) 86)

HOUSE FILE 518

BY  KELLEY

A BILL FOR

An Act relating to alternate and renewable energy by creating a school wind generation revolving loan and grant program and fund within the Iowa energy center to fund wind generation projects, modifying the authorized uses of physical plant and equipment revenue, and making an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 266.39C, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  The Iowa energy center shall establish and administer the school wind generation revolving loan and grant program pursuant to section 473.21.
    Sec. 2.  Section 298.3, subsection 1, paragraph g, Code 2015, is amended to read as follows:
   g.  (1)  Expenditures for energy conservation, including payments made pursuant to a guarantee furnished by a school district entering into a financing agreement for energy management improvements, limited to agreements pursuant to section 473.19, 473.20, or 473.20A.
   (2)  Expenditures for the construction of alternate energy production facilities, as defined in section 476.42, subsection 1, or the modification or repair of existing alternate energy production facilities.
    Sec. 3.  NEW SECTION.  473.21  School wind generation revolving loan and grant program.
   1.  The Iowa energy center created under section 266.39C shall establish and administer a school wind generation revolving loan and grant program to encourage wind generation projects at school districts and Iowa community colleges within the state. For purposes of this section, “wind generation project” means the purchase and installation at a school district or Iowa community college of a wind energy conversion system or systems that in the aggregate will produce electricity which has a nameplate generating capacity not in excess of one hundred kilowatts.
   2.  a.  A school wind generation revolving loan and grant fund is created in the office of the treasurer of state to be administered by the Iowa energy center.
   b.  The fund shall consist of any moneys appropriated or otherwise directed to the fund. Section 8.33 shall not apply to moneys in the fund. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   c.  Moneys in the fund shall be used to provide grants and loans to fund wind generation projects as provided in subsection 3.
   3.  Any school district or Iowa community college in this state may apply to the Iowa energy center to receive a grant and loan for a wind generation project, which grant and loan shall be available as follows:
   a.  A school district or Iowa community college may receive a grant for an amount not to exceed forty percent of the purchase and installation costs associated with that part of the wind generation project that will produce electricity which has a nameplate generating capacity of ten kilowatts or less.
   b.  (1)  A school district or Iowa community college may receive a loan for an amount not to exceed forty percent of the remaining purchase and installation costs associated with the wind generation project that were not used to calculate the grant pursuant to paragraph “a”.
   (2)  Each loan under this paragraph “b” shall be for a period not to exceed twenty years, shall bear no interest, and shall be repayable to the fund created under this section in installments as determined by the Iowa energy center. The interest rate upon delinquent payments shall accelerate immediately to the current legal usury limit.
   (3)  Any loan made pursuant to this program shall immediately become due for payment upon sale of the wind energy conversion system for which the loan was made.
    Sec. 4.  SCHOOL WIND GENERATION REVOLVING LOAN AND GRANT PROGRAM —— APPROPRIATION.
   1.  There is appropriated from the general fund of the state to the school wind generation revolving loan and grant fund in section 473.21 for the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following amount, or so much thereof as is necessary, to be used for the purposes designated:

   For providing grants and loans to fund wind generation projects as provided in section 473.21:

.................................................. $  5,000,000

   2.  Notwithstanding section 8.33, moneys appropriated pursuant to this section shall not revert but shall remain available to the school wind generation revolving loan and grant fund for the purposes designated until expended. Notwithstanding section 12C.7, subsection 2, earnings or interest on moneys appropriated pursuant to this section shall be credited to the school wind generation revolving loan and grant fund and used for the purposes designated until expended.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill establishes a school wind generation revolving loan and grant program within the Iowa energy center, creates a corresponding fund, and makes a $5 million appropriation to the fund for FY 2015-2016. Moneys in the fund will be used to provide loans and grants to school districts and Iowa community colleges to invest in wind generation projects. “Wind generation project” is defined as the purchase and installation of a wind energy conversion system or systems that in the aggregate will produce electricity which has a nameplate generating capacity not in excess of 100 kilowatts.
   School districts or Iowa community colleges may apply to the Iowa energy center to receive a grant and loan for the purchase and installation costs of a wind generation project. 
   A grant not to exceed 40 percent of the purchase and installation costs may be provided for that part of a wind generation project that will produce electricity which has a nameplate generating capacity of up to 10 kilowatts. If the wind generation project will produce electricity which has a nameplate generating capacity of greater than 10 kilowatts, a school district or Iowa community college may receive the grant listed above and a loan not to exceed 40 percent of the remaining purchase and installation costs that are in excess of those established for the grant.
   Each loan provided in the bill shall be for a period not to exceed 20 years, shall bear no interest, and shall be repayable to the fund in installments determined by the Iowa energy center. The interest rate upon delinquent payments shall accelerate immediately to the current legal usury limit. Loans shall become due immediately upon the sale of the wind energy conversion system for which the loan was made.
   Additionally, the bill adds as one of the authorized uses of physical plant and equipment levy revenues by a school district expenditures for the construction of alternate energy production facilities as defined in Code section 476.42, subsection 1, or the modification or repair of existing alternate energy production facilities.