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:
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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, 2011 2012.
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 of the an 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 which shall designate is 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, 2020 2021.
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.
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