HF 2439 (LSB 6091YH (11) 88)

HOUSE FILE 2439

BY  ISENHART and WILLIAMS

A BILL FOR

An Act relating to public utilities, including specified energy-efficiency-related programs, tax credits, and responsibilities of the Iowa energy center and office of the consumer advocate.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 15.120, subsection 1, Code 2020, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  h.  To provide outreach and education to utility ratepayers regarding energy efficiency and renewable energy technology options and financing opportunities for efficiently managing and reducing energy consumption, including distributed energy storage technology.
    Sec. 2.  Section 422.11L, subsection 3, paragraph c, Code 2020, is amended to read as follows:
   c.  A taxpayer may claim more than one credit under this section, but may claim only one credit per separate and distinct solar installation or device used to store energy generated by a solar installation. The department shall establish criteria, by rule, for determining what constitutes a separate and distinct installation.
    Sec. 3.  Section 422.11L, subsection 3, paragraph d, subparagraph (1), Code 2020, is amended to read as follows:
   (1)  A taxpayer must submit an application to the department for each separate and distinct solar installation and device used to store energy generated by a solar installation. The application must be approved by the department in order to claim the tax credit. The application must be filed by May 1 following the year of the installation of the solar energy system.
    Sec. 4.  Section 422.11L, subsection 4, paragraph a, Code 2020, is amended to read as follows:
   a.  The cumulative value of tax credits claimed annually by applicants pursuant to this section shall not exceed five seven million dollars. Of this amount, at least one million dollars shall be reserved for claims associated with or resulting from residential solar energy system installations. In the event that the total amount of claims submitted for residential solar energy system installations in a tax year is an amount less than one million dollars, the remaining unclaimed reserved amount shall be made available for claims associated with or resulting from nonresidential solar energy system installations or devices used to store energy generated by nonresidential solar energy system installations received for the tax year.
    Sec. 5.  Section 475A.2, Code 2020, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  Develop, format, and make available for public use a standard energy cost disclosure statement for utilization by landlords of residential property to communicate to prospective tenants the historical gas, electric, water, and sewer utility service costs for a dwelling unit. The disclosure statement shall include the total annual or average monthly utility service costs, and shall also include a checklist to indicate the efficiency and other energy features of a dwelling unit and the building of which it is a part.
    Sec. 6.  Section 476.6, Code 2020, is amended by adding the following new subsection:
   NEW SUBSECTION.  22.  Solar energy storage capacity.  A rate-regulated electric utility may provide for solar energy storage capacity paired with solar energy facility installations in the state. Solar energy storage capacity based on electrical output may be credited to the electric utility’s solar energy ownership or purchase requirements as provided in section 476.44, subsection 2. For purposes of this subsection, the economic development authority shall define by rule adopted pursuant to chapter 17A the meaning of the term “storage”, consistent with the Iowa energy plan adopted by the authority in December 2016.
    Sec. 7.  Section 476.44, subsection 2, Code 2020, is amended to read as follows:
   2.  a.  (1)  An electric utility subject to this subchapter, except a utility that elects rate regulation pursuant to section 476.1A, shall not be required to own or purchase, at any one time, more than from solar energy facilities located in this state, its share of one hundred five megawatts of power from alternate energy production facilities or small hydro facilities by January 1, 2022, and two thousand five hundred megawatts of power by January 1, 2026, at the rates established pursuant to section 476.43. The board shall allocate the one hundred five megawatts solar energy ownership or purchase requirements based upon each utility’s percentage of the total Iowa retail peak demand, for the year beginning January 1, 1990 2020, of all utilities subject to this section. If a utility undergoes reorganization as defined in section 476.76, the board shall combine the allocated purchases of power solar energy for each utility involved in the reorganization.
   (2)  In satisfying the solar energy ownership or purchase requirements pursuant to subparagraph (1), a minimum of ten percent of the energy produced or purchased shall be produced or purchased from solar energy facilities with a nameplate generating capacity of twenty kilowatts or less.
   b.  Notwithstanding the one hundred five megawatt maximum solar energy ownership or purchase requirements established in paragraph “a”, the board may increase the amount of power solar energy that a utility is required to own or purchase at the rates established pursuant to section 476.43 if the board finds that a utility, including a reorganized utility, exceeds its 1990 2020 Iowa retail peak demand by twenty percent and the additional power solar energy the utility is required to purchase will encourage the development of alternate energy production facilities and small hydro solar energy facilities. The increase shall not exceed the utility’s increase in peak demand multiplied by the ratio of the utility’s share of the one hundred five megawatt maximum solar energy ownership or purchase requirements to its 1990 2020 Iowa retail peak demand.
    Sec. 8.  NEW SECTION.  476.61  Virtual net metering.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Solar garden” means a solar panel installation that provides electricity to multiple electric utility customers and to which any of the following apply:
   (1)  An electric utility customer may purchase solar panels within the installation.
   (2)  An electric utility customer may lease solar panels within the installation.
   b.  “Virtual net metering” means a bill crediting system that allows an electric utility customer to receive credits on their electric bill for energy produced by the electric utility customer’s share of a solar garden. 
   2.  The board shall adopt rules pursuant to chapter 17A establishing processes and procedures allowing electric utility customers to participate in, and receive credits on their electric bills for, virtual net metering.
    Sec. 9.  NEW SECTION.  476.64  Master metering.
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Master metering” means a method of measuring the total usage of public utilities by multiple persons in a multifamily residence that utilizes a device that measures and registers the integral of quantities of public utilities with respect to time.
   b.  “Owner” means one or more persons, jointly or severally, in whom is vested:
   (1)  All or part of the legal title to a multifamily residence.
   (2)  All or part of the beneficial ownership and right to present use and enjoyment of a multifamily residence.
   2.  The board shall adopt rules pursuant to chapter 17A establishing processes and procedures, including an application process, allowing an owner who is a public utility customer to participate in master metering.
   3.  The board shall not approve an owner’s application to participate in master metering unless the application indicates the owner’s ability and intent to provide renewable energy generation, energy efficiency technology, or infrastructure improvements to a multifamily residence that is the subject of the application. 
   4.  An owner who successfully applies for master metering shall not do any of the following:
   a.  Charge a tenant of the multifamily residence for the tenant’s public utility usage.
   b.  Enter into a lease agreement with a tenant that is structured to account for the variance in energy usage by the tenants of the multifamily residence.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to public utilities, including duties of the Iowa energy center with regard to energy efficiency outreach, solar energy system tax credits, duties of the office of the consumer advocate with regard to disclosure of certain energy costs, solar energy storage capacity and ownership or purchase requirements applicable to certain electric utilities, and new metering methods.
   The bill requires the Iowa energy center to provide outreach and education to utility ratepayers regarding energy efficiency, renewable energy technology options, and financing opportunities for efficiently managing energy consumption.
   Current law limits to $5 million annually the amount of solar energy tax credits a person may claim. The bill increases this annual amount to $7 million. The bill also allows a person to claim solar energy tax credits in conjunction with devices used to store energy generated by a solar installation.
   The bill requires the office of the consumer advocate to develop and make available for public use a standard energy cost disclosure statement for utilization by landlords of residential property to communicate to prospective tenants the historical utility service costs for a dwelling unit. The disclosure statement shall include the total annual or average monthly utility service costs and other energy features of a dwelling unit and the building of which it is a part.
   The bill allows a rate-regulated electric utility to provide for solar energy storage capacity paired with solar energy facility installations in Iowa. Storage capacity based on electrical output may be credited to the utility’s solar energy ownership or purchase requirements as provided in the bill. The Iowa economic development authority shall define by rule the meaning of the term “storage”, consistent with the Iowa energy plan adopted by the authority.
   Current law requires electric utilities to own alternate energy production facilities or small hydro facilities located in Iowa, or to enter into long-term contracts to purchase electricity from such facilities. An electric utility is not required to own or purchase, at any one time, more than its share of 105 megawatts of power from such facilities.
   The bill modifies the alternate energy ownership or purchase requirement to make it applicable strictly to solar energy derived from solar energy facilities located in Iowa, and requires an electric utility to own or purchase its share of 105 megawatts of power by January 1, 2022, and 2,500 megawatts of power by January 1, 2026. Of these amounts, a minimum of 10 percent of the energy produced or purchased shall be from solar energy facilities with a nameplate generating capacity of 20 kilowatts or less. The bill makes conforming changes to related provisions.
   The bill directs the Iowa utilities board to adopt rules allowing for virtual net metering. The bill defines “virtual net metering” as a bill crediting system that allows an electric utility customer to receive credits on their electric bill for energy produced by the electric utility customer’s share of a solar garden. The bill defines “solar garden” as a solar panel installation that provides electricity to multiple electric utility customers and in which an electric utility customer may either purchase or lease solar panels. 
   The bill also directs the board to adopt rules allowing for master metering for owners of a multifamily residence. The bill defines “master metering” as a method of measuring the total usage of public utilities by multiple persons in a multifamily residence that utilizes a device that measures and registers the integral of quantities of public utilities with respect to time. The bill defines “owner” as a person or persons in whom legal title or beneficial ownership and right to present use of a multifamily residence is vested.
   The bill provides the board shall not approve an owner’s application for master metering unless the application indicates the owner’s ability and intent to provide renewable energy generation, energy efficiency technology, or infrastructure improvements to the multifamily residence. The bill prohibits an owner who successfully applies for master metering from charging tenants of the multifamily residence for their individual public utility usage, or entering into leases with tenants which leases are structured to account for variance in energy usage by the tenants of the multifamily residence.