House File 669 H-1207 Amend House File 669 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 476.6, Code 2019, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 22. Value of distributed solar tariff and 6 credit —— methodology. 7 a. For purposes of this subsection: 8 (1) “Distributed solar facility” means a solar distributed 9 generation facility as defined in section 476.58. 10 (2) “Net metering” means the interconnection of an alternate 11 energy production facility or small hydro facility with an 12 electric utility whereby electricity produced by the facility 13 and consumed on site offsets electricity that would otherwise 14 be purchased from the electric utility, excess electricity 15 produced by the facility is transferred to the utility’s 16 electrical grid, and the customer is provided a credit for the 17 electricity transferred to the utility’s electrical grid. 18 b. The general assembly recognizes that distributed solar 19 facilities provide a wide range of benefits to the electric 20 distribution grid, and to electric utilities and their 21 customers. The general assembly also recognizes that many 22 states and electric utilities have evaluated and quantified 23 the benefits in value of solar studies. The general assembly 24 additionally recognizes that once quantified, this information 25 can be used to establish rates for customers that utilize 26 distributed solar facilities that reflect and compensate 27 such customers for these benefits. The general assembly 28 further recognizes that states have evaluated and quantified 29 numerous values and benefits with respect to distributed solar 30 facilities, including avoided fuel costs, energy and capacity 31 costs, reduction in peak load, electric grid benefits, and 32 local economic development. 33 c. The board shall establish a methodology to derive a value 34 of distributed solar tariff and credit as an alternative to 35 -1- HF669.1197 (3) 88 gh/rn 1/ 4 #1.

net metering for distributed solar facility customers. The 1 methodology shall account for the value of a distributed solar 2 facility and its output, as well as the value of any affiliated 3 energy storage facility. In establishing the methodology, the 4 board shall initiate a formal proceeding to gather input from 5 electric utilities and other interested stakeholders. The 6 methodology shall, at a minimum, fully account for the value of 7 energy and its delivery, including at peak times, generation 8 capacity, avoided transmission and distribution capacity, 9 avoided transmission and distribution line losses, avoided fuel 10 costs, fuel cost stability and hedge value, avoided reserve 11 capacity costs, avoided or deferred electric infrastructure 12 costs, including initial capital costs and ongoing fixed and 13 variable costs, and avoided federally mandated pollution 14 mitigation costs. To the extent feasible, the methodology 15 shall also consider other benefits and values, including the 16 installation of distributed solar facilities at high-value 17 locations on the electric distribution grid. The methodology 18 may take into account electric distribution grid integration 19 costs which are directly attributable to distributed solar 20 facilities and are not directly paid by the customer during the 21 interconnection process. However, the methodology shall not 22 consider wholesale market energy and capacity costs. 23 d. The board shall review and consider changes to the 24 methodology established under paragraph “c” every three years. 25 e. The board shall submit a report to the general assembly 26 containing the results of the methodology established under 27 paragraph “c” by December 31, 2020, and by the same date every 28 three years thereafter. > 29 2. Title page, by striking lines 1 and 2 and inserting 30 < An Act providing for a methodology to establish tariffs and 31 credits applicable to certain solar facilities. > 32 -2- HF669.1197 (3) 88 gh/rn 2/ 4

______________________________ PAUSTIAN of Scott ______________________________ ZUMBACH of Linn ______________________________ MITCHELL of Henry ______________________________ MAXWELL of Poweshiek ______________________________ LUNDGREN of Dubuque ______________________________ THOMPSON of Greene ______________________________ McKEAN of Jones ______________________________ BLOOMINGDALE of Worth ______________________________ LOHSE of Polk -3- HF669.1197 (3) 88 gh/rn 3/ 4

______________________________ SHIPLEY of Jefferson ______________________________ KLEIN of Washington ______________________________ KERR of Louisa ______________________________ BERGAN of Winneshiek -4- HF669.1197 (3) 88 gh/rn 4/ 4