House File 2489 - Introduced
HOUSE FILE
BY MAY, STRUYK, SODERBERG,
and FREEMAN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to eligibility requirements for the renewable
2 energy tax credit and providing an effective date.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6206YH 81
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PAG LIN
1 1 Section 1. Section 476C.3, subsection 1, Code Supplement
1 2 2005, is amended to read as follows:
1 3 1. A producer or purchaser of renewable energy may apply
1 4 to the board for a written determination regarding whether a
1 5 facility is an eligible renewable energy facility by
1 6 submitting to the board a written application containing all
1 7 of the following:
1 8 a. Information regarding the ownership of the facility
1 9 including the percentage of equity interest held by each
1 10 owner.
1 11 b. The nameplate generating capacity of the facility or
1 12 energy production capacity equivalent.
1 13 c. Information regarding the facility's initial placement
1 14 in service.
1 15 d. Information regarding the type of facility and what
1 16 type of renewable energy the facility will produce.
1 17 e. A copy of the power purchase agreement or other
1 18 agreement to purchase electricity, hydrogen fuel, methane or
1 19 other biogas, or heat for a commercial purpose which shall
1 20 designate either the producer or purchaser of renewable energy
1 21 as eligible to apply for the renewable energy tax credit.
1 22 f. A letter of credit in an amount reasonably sufficient
1 23 to finance the construction of the facility.
1 24 f. g. Any other information the board may require.
1 25 Sec. 2. Section 476C.3, subsection 3, Code Supplement
1 26 2005, is amended by striking the subsection and inserting in
1 27 lieu thereof the following:
1 28 3. A facility loses its approval by the board as an
1 29 eligible renewable energy facility if any of the following
1 30 occur:
1 31 a. The facility is not operational within eighteen months
1 32 after issuance of an approval for the facility by the board.
1 33 b. The owner of the facility does not provide the board
1 34 within ninety days after issuance of an approval for the
1 35 facility by the board an executed power purchase agreement or
2 1 other executed agreement to sell electricity, heat for a
2 2 commercial purpose, methane gas or other biogas, or hydrogen
2 3 fuel generated by the facility to a purchaser of renewable
2 4 energy.
2 5 c. Within one hundred eighty days after issuance of an
2 6 approval for the facility by the board, the owner of the
2 7 facility fails to place an amount equal to twenty percent of
2 8 the total moneys needed to finance the construction of the
2 9 facility in an escrow account until invested in the
2 10 construction of the facility and provide proof to the board
2 11 that the moneys have been placed in escrow as required by this
2 12 paragraph.
2 13 3A. A facility that is granted and thereafter loses
2 14 approval as an eligible renewable energy facility under this
2 15 section may reapply to the board for a new determination.
2 16 Sec. 3. EFFECTIVE DATE. This Act, being deemed of
2 17 immediate importance, takes effect upon enactment.
2 18 EXPLANATION
2 19 This bill relates to the eligibility requirements for the
2 20 renewable energy tax credit. The bill provides that when a
2 21 producer or purchaser of renewable energy applies to the Iowa
2 22 utilities board for a determination regarding whether a
2 23 renewable energy facility is an eligible renewable energy
2 24 facility, the producer or purchaser must provide with the
2 25 application a letter of credit in an amount that is reasonably
2 26 sufficient to finance the construction of the renewable energy
2 27 facility.
2 28 The bill provides that in addition to the current
2 29 requirement that a facility be operational within 18 months
2 30 after receiving approval as an eligible renewable energy
2 31 facility by the board, the owner of the facility must also
2 32 provide the board, within 90 days after approval, an executed
2 33 power purchase agreement or other executed agreement to sell
2 34 electricity, heat for a commercial purpose, methane gas or
2 35 other biogas, or hydrogen fuel generated by the facility to a
3 1 purchaser of renewable energy. The bill requires an owner of
3 2 a facility that has received approval by the board as an
3 3 eligible renewable energy facility to place an amount equal to
3 4 20 percent of the total moneys needed to finance the
3 5 construction of the facility in an escrow account within 180
3 6 days after approval. The owner must provide the board with
3 7 proof that the moneys have been placed in an escrow account as
3 8 required by the bill.
3 9 A facility can lose its approval as a renewable energy
3 10 facility requiring the owner of the facility to reapply for
3 11 approval if the facility is not operational within 18 months,
3 12 if the owner fails to provide an executed power purchase
3 13 agreement or other documentation of the sale of renewable
3 14 energy, or if the owner fails to place an amount equal to 20
3 15 percent of the total moneys needed to finance the construction
3 16 of the facility as required by the bill. However, a facility
3 17 can reapply for a new determination of approval.
3 18 The bill takes effect upon enactment.
3 19 LSB 6206YH 81
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