House File 2788 - Introduced
HOUSE FILE
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HF 2682)
(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, subsections 2 and 3, Code
1 6 Supplement 2005, are amended to read as follows:
1 7 2. The board shall review the application and supporting
1 8 information and shall make a preliminary determination
1 9 regarding whether the facility is an eligible renewable energy
1 10 facility. The board shall notify the applicant of the
1 11 approval or denial of the application within thirty days of
1 12 receipt of the application and information required. If the
1 13 board fails to notify the applicant of the approval or denial
1 14 within thirty days, the application shall be deemed denied
1 15 unless the application is placed on a waiting list as
1 16 described in subsection 6. An applicant who receives a
1 17 determination denying an application may file an appeal with
1 18 the board within thirty days from the date of the denial
1 19 pursuant to the provisions of chapter 17A. In the absence of
1 20 a timely appeal, the preliminary determination shall be final.
1 21 If the application is incomplete, the board may grant an
1 22 extension of time for the provision of additional information.
1 23 3. A facility that is not operational within eighteen
1 24 months after issuance of an approval for the facility by the
1 25 board shall cease to be an eligible renewable energy facility.
1 26 However, a wind energy conversion facility that is approved as
1 27 eligible under this section but is not operational within
1 28 eighteen months due to the unavailability of necessary
1 29 equipment shall be granted an additional twelve months to
1 30 become operational. A facility that is granted and thereafter
1 31 loses approval may reapply to the board for a new
1 32 determination.
1 33 Sec. 3. Section 476C.3, Code Supplement 2005, is amended
1 34 by adding the following new subsections:
1 35 NEW SUBSECTION. 6. The board shall maintain a waiting
2 1 list of facilities that may have been found eligible under
2 2 this section but for the maximum capacity restrictions of
2 3 subsection 4. The priority of the waiting list shall be
2 4 maintained in the order the applications were received by the
2 5 board. The board shall remove from the waiting list any
2 6 facility that has subsequently been found ineligible under
2 7 this chapter. If additional capacity becomes available within
2 8 the capacity restrictions of subsection 4, the board shall
2 9 grant approval to facilities according to the priority of the
2 10 waiting list before granting approval to new applications.
2 11 NEW SUBSECTION. 7. In addition to any other requirements
2 12 under this chapter, within twelve months after receiving
2 13 approval by the board as an eligible facility, the owner of
2 14 the facility shall provide the board with a copy of an
2 15 executed power purchase agreement or other agreement
2 16 demonstrating a financial capability and commitment to bring
2 17 the project to completion and to purchase electricity,
2 18 hydrogen fuel, methane or other biogas, or heat for a
2 19 commercial purpose, which agreement is binding on the parties
2 20 to the agreement and which designates either the producer or
2 21 purchaser of renewable energy as eligible to apply for the
2 22 renewable energy tax credit. The board shall deny eligibility
2 23 to any facility whose owner fails to comply with this
2 24 subsection. The board shall adopt rules to describe the
2 25 agreements that are acceptable under this subsection.
2 26 Sec. 4. Section 476C.5, Code Supplement 2005, is amended
2 27 to read as follows:
2 28 476C.5 CERTIFICATE ISSUANCE PERIOD.
2 29 A producer or purchaser of renewable energy may receive
2 30 renewable energy tax credit certificates for a ten=year period
2 31 for each eligible renewable energy facility under this
2 32 chapter. The ten=year period for issuance of the tax credit
2 33 certificates begins with the date the purchaser of renewable
2 34 energy first purchases electricity, hydrogen fuel, methane gas
2 35 or other biogas used to generate electricity, or heat for
3 1 commercial purposes from the eligible renewable energy
3 2 facility for which a tax credit is issued under this chapter.
3 3 Renewable energy tax credit certificates shall not be issued
3 4 for renewable energy purchased after December 31, 2020 2021.
3 5 Sec. 5. ADMINISTRATIVE RULES. The utilities board may
3 6 adopt administrative rules under section 17A.4, subsection 2,
3 7 and section 17A.5, subsection 2, paragraph "b", to implement
3 8 the provisions of this Act amending section 476C.3, and the
3 9 rules shall become effective immediately upon filing or on a
3 10 later effective date specified in the rules, unless the
3 11 effective date is delayed by the administrative rules review
3 12 committee. Any rules adopted in accordance with this section
3 13 shall not take effect before the rules are reviewed by the
3 14 administrative rules review committee. The delay authority
3 15 provided to the administrative rules review committee under
3 16 section 17A.4, subsection 6, and section 17A.8, subsection 9,
3 17 shall be applicable to a delay imposed under this section,
3 18 notwithstanding a provision in those sections making them
3 19 inapplicable to section 17A.5, subsection 2, paragraph "b".
3 20 Any rules adopted in accordance with the provisions of this
3 21 section shall also be published as notice of intended action
3 22 as provided in section 17A.4.
3 23 Sec. 6. TEMPORARY PROVISION. A facility that has been
3 24 approved as eligible by the board under section 476C.3 prior
3 25 to the effective date of this Act shall have until July 1,
3 26 2007, to provide the board with a copy of an executed power
3 27 purchase agreement or other agreement required under section
3 28 476C.3, subsection 7.
3 29 EXPLANATION
3 30 This bill relates to the renewable energy tax program. The
3 31 bill extends the eligibility deadline for placement into
3 32 service of a renewable energy facility by one year to January
3 33 1, 2012. The bill provides that the board may place an
3 34 application for a determination of whether a facility is an
3 35 eligible renewable energy facility on a waiting list if the
4 1 facility may have been found eligible but for the maximum
4 2 capacity requirements. The bill requires an owner of an
4 3 approved facility to provide the utilities board, within 12
4 4 months after receiving approval, with a copy of an executed
4 5 power purchase agreement or other agreement that demonstrates
4 6 a financial commitment to bring the project to completion and
4 7 that is binding on the parties to the agreement.
4 8 Under current law, if an eligible facility is not
4 9 operational within 18 months, the facility is no longer
4 10 considered eligible. The bill extends this operational
4 11 deadline by an additional 12 months if the eligible facility
4 12 is a wind energy conversion facility and cannot be operational
4 13 within 18 months due to the unavailability of necessary
4 14 equipment.
4 15 Under current law, a renewable energy tax credit
4 16 certificate cannot be issued for any renewable energy
4 17 purchased after December 31, 2020. The bill extends the
4 18 renewable energy tax credit certificate issuance period by one
4 19 year to December 31, 2021.
4 20 The bill provides for the adoption of rules by the
4 21 utilities board relating to the agreements that are acceptable
4 22 when applying for a determination of eligibility of a
4 23 renewable energy facility. The bill provides that the rules
4 24 adopted shall be effective upon enactment unless delayed by
4 25 the administrative rules review committee.
4 26 The bill provides that a facility that has been approved as
4 27 an eligible facility by the board prior to the effective date
4 28 of the bill shall have until July 1, 2007, to provide the
4 29 board with an executed power purchase agreement or other
4 30 agreement showing financial capability and commitment.
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