House File 2682 - Introduced HOUSE FILE BY COMMITTEE ON COMMERCE, REGULATION AND LABOR (SUCCESSOR TO HF 2489) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the renewable energy tax credit program 2 including providing for the extension of certain eligibility 3 deadlines and operational requirements for eligible 4 facilities. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6206HV 81 7 kk/je/5 PAG LIN 1 1 Section 1. Section 476C.1, subsection 6, paragraph d, Code 1 2 Supplement 2005, is amended to read as follows: 1 3 d. Was initially placed into service on or after July 1, 1 4 2005, and before January 1,20112012. 1 5 Sec. 2. Section 476C.3, subsection 1, paragraph e, Code 1 6 Supplement 2005, is amended to read as follows: 1 7 e. A copy ofthean executed power purchase agreement or 1 8 other agreement demonstrating a financial capability and 1 9 commitment to bring the project to completion and to purchase 1 10 electricity, hydrogen fuel, methane or other biogas, or heat 1 11 for a commercial purpose whichshall designateis binding on 1 12 the parties to the agreement and which designates either the 1 13 producer or purchaser of renewable energy as eligible to apply 1 14 for the renewable energy tax credit. The board shall adopt 1 15 rules to describe the agreements that are acceptable under 1 16 this paragraph. 1 17 Sec. 3. Section 476C.3, subsection 3, Code Supplement 1 18 2005, is amended to read as follows: 1 19 3. A facility that is not operational within eighteen 1 20 months after issuance of an approval for the facility by the 1 21 board shall cease to be an eligible renewable energy facility. 1 22 However, a wind energy conversion facility that is approved as 1 23 eligible under this section but is not operational within 1 24 eighteen months due to the unavailability of necessary 1 25 equipment shall be granted an additional twelve months to 1 26 become operational. A facility that is granted and thereafter 1 27 loses approval may reapply to the board for a new 1 28 determination. 1 29 Sec. 4. Section 476C.5, Code Supplement 2005, is amended 1 30 to read as follows: 1 31 476C.5 CERTIFICATE ISSUANCE PERIOD. 1 32 A producer or purchaser of renewable energy may receive 1 33 renewable energy tax credit certificates for a ten=year period 1 34 for each eligible renewable energy facility under this 1 35 chapter. The ten=year period for issuance of the tax credit 2 1 certificates begins with the date the purchaser of renewable 2 2 energy first purchases electricity, hydrogen fuel, methane gas 2 3 or other biogas used to generate electricity, or heat for 2 4 commercial purposes from the eligible renewable energy 2 5 facility for which a tax credit is issued under this chapter. 2 6 Renewable energy tax credit certificates shall not be issued 2 7 for renewable energy purchased after December 31,20202021. 2 8 Sec. 5. ADMINISTRATIVE RULES. The utilities board may 2 9 adopt administrative rules under section 17A.4, subsection 2, 2 10 and section 17A.5, subsection 2, paragraph "b", to implement 2 11 the provisions of this Act amending section 476C.3, subsection 2 12 1, paragraph "e", and the rules shall become effective 2 13 immediately upon filing or on a later effective date specified 2 14 in the rules, unless the effective date is delayed by the 2 15 administrative rules review committee. Any rules adopted in 2 16 accordance with this section shall not take effect before the 2 17 rules are reviewed by the administrative rules review 2 18 committee. The delay authority provided to the administrative 2 19 rules review committee under section 17A.4, subsection 6, and 2 20 section 17A.8, subsection 9, shall be applicable to a delay 2 21 imposed under this section, notwithstanding a provision in 2 22 those sections making them inapplicable to section 17A.5, 2 23 subsection 2, paragraph "b". Any rules adopted in accordance 2 24 with the provisions of this section shall also be published as 2 25 notice of intended action as provided in section 17A.4. 2 26 EXPLANATION 2 27 This bill relates to the renewable energy tax program. The 2 28 bill extends the eligibility deadline for placement into 2 29 service of a renewable energy facility by one year to January 2 30 1, 2012. The bill requires a person applying for a 2 31 determination of eligibility to provide the utilities board 2 32 with a copy of an executed power purchase agreement or other 2 33 agreement that demonstrates a financial commitment to bring 2 34 the project to completion and that is binding on the parties 2 35 to the agreement. 3 1 Under current law, if an eligible facility is not 3 2 operational within 18 months, the facility is no longer 3 3 considered eligible. The bill extends this operational 3 4 deadline by an additional 12 months if the eligible facility 3 5 is a wind energy conversion facility and cannot be operational 3 6 within 18 months due to the unavailability of necessary 3 7 equipment. 3 8 Under current law, a renewable energy tax credit 3 9 certificate cannot be issued for any renewable energy 3 10 purchased after December 31, 2020. The bill extends the 3 11 renewable energy tax credit certificate issuance period by one 3 12 year to December 31, 2021. 3 13 The bill provides for the adoption of rules by the 3 14 utilities board relating to the agreements that are acceptable 3 15 when applying for a determination of eligibility of a 3 16 renewable energy facility. The bill provides that the rules 3 17 adopted shall be effective upon enactment unless delayed by 3 18 the administrative rules review committee. 3 19 LSB 6206HV 81 3 20 kk:rj/je/5