CHAPTER 62
COGENERATION PILOT PROGRAM
261—62.1(80GA,HF391) Purpose. The purpose of the cogeneration pilot program (CPP) is to foster the development of electricity cogeneration within the state in order to diversify Iowa’s electricity supply and foster economic development.
261—62.2(80GA,HF391) Eligible activities. The department may choose up to two projects for participation in the cogeneration pilot program.
261—62.3(80GA,HF391) Eligibility requirements. To be eligible for the cogeneration pilot program, a business shall meet each of the following requirements:
	62.3(1) Generation capacity. Each cogeneration pilot project facility must involve a project of 200 megawatts or less of electric generation capacity.
	62.3(2) Investment location. Each cogeneration pilot project facility must be located within Iowa.
	62.3(3) Economic impacts. The business shall demonstrate, as a result of the proposed project, significant beneficial economic impacts to the state or to a region of the state.
	62.3(4) No closure or reduction in operations. The business shall not close or substantially reduce operations at one location in Iowa and relocate substantially the same operation elsewhere in the state if the closure or reduction results in loss of employment.
261—62.4(80GA,HF391) Application procedures.
	62.4(1) Application required. To receive designation as an approved cogeneration pilot program project, an application must be submitted in the format specified by the department. A business shall submit an application on its own behalf.
	62.4(2) Application contents. Applications shall include the following:
	a. 	A project description including the activities involved and the impact the project is expected to have on electricity cost, availability and reliability.
	b. 	A description of the consistency of the proposed project with state and regional plans for economic development.
	c. 	An identification of the number of jobs to be created or retained as a result of the project and an explanation of why the jobs are considered quality, high-wage jobs. The explanation shall include the job classifications, pay ranges, and benefits to be provided to the employees.
	d. 	An identification of the amount, terms, and sources of all proposed public and private investments in the project and a statement that indicates whether the other financing has been secured or is still to be arranged.
	e. 	Cost estimates for all project activities.
	f. 	A time frame within which the project will be completed.
	g. 	A description of the immediate (within 24 months) economic development impacts as a result of the project.
	h. 	A description of the long-term (beyond 24 months), speculative economic development impacts as a result of the project.
	i. 	An explanation as to why the project could not otherwise occur without the benefits of this program.
	62.4(3) Application due date. In order to be considered for review, an application must be submitted to the department before April 1, 2007.
261—62.5(80GA,HF391) Application review. Completed applications will be reviewed using the following factors:
	62.5(1) The expected immediate and long-term economic impacts the project will have on the state of Iowa and region(s) of Iowa including, but not limited to, the likelihood that the project will result in additional new private investment and quality job creation in Iowa. In determining the quality of possible new jobs to be created, the department will consider projected wage levels, fringe benefit packages, turnover rate, full-time and career positions, and other relevant factors.
	62.5(2) Substantiality of the capital investment pledged by the business.
	62.5(3) The likelihood of closure or relocation of the business’s operations and any resulting loss of employment.
	62.5(4) The number of direct jobs to be created by the project.
	62.5(5) The amount, terms, and sources of all proposed public and private investments that the project will leverage.
	62.5(6) The degree of coordination the project has with state and regional economic development plans.
	62.5(7) The feasibility of the project.
	62.5(8) Any other information about the business that has a bearing on the likely success of the project.
	62.5(9) The degree to which the project contributes to the diversification of Iowa’s electricity supply and fosters economic development.
261—62.6(80GA,HF391) Award process.
	62.6(1) Applications will be reviewed and summarized by department staff. Staff will prepare a summary for the director of the department, who shall make a final decision on the application.
	62.6(2) Upon an application’s submission, department staff will consult with the Iowa utilities board and any other relevant state agency or interested party in order to gain additional information or to seek comment.
	62.6(3) The department shall not approve any application after June 30, 2007.
261—62.7(80GA,HF391) Annual progress report. Every approved pilot project designee shall submit an annual progress report, whose format will be determined by the department. The annual report shall be submitted no later than November 1, beginning in the year 2004 and every year thereafter, up to and including 2007.
These rules are intended to implement 2003 Iowa Acts, House File 391.
[Filed emergency 7/18/03—published 8/6/03, effective 7/18/03]
[Filed 8/27/03, Notice 7/9/03—published 9/17/03, effective 10/22/03]