Senate File 2070 - Introduced
SENATE FILE
BY HOGG
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to renewable energy production by establishing an
2 electricity renewable energy standard, and making specified
3 tax credits applicable.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 476.44, subsection 2, Code 2007, is
1 2 amended to read as follows:
1 3 2. An electric utility subject to this division, except a
1 4 utility that elects rate regulation pursuant to section
1 5 476.1A, shall not be required to own or purchase, at any one
1 6 time, more than its share of one hundred five megawatts of
1 7 power from alternative energy production facilities or small
1 8 hydro facilities at the rates established pursuant to section
1 9 476.43. The board shall allocate the one hundred five
1 10 megawatts based upon each utility's percentage of the total
1 11 Iowa retail peak demand, for the year beginning January 1,
1 12 1990, of all utilities subject to this section. If a utility
1 13 undergoes reorganization as defined in section 476.76, the
1 14 board shall combine the allocated purchases of power for each
1 15 utility involved in the reorganization.
1 16 Notwithstanding the one hundred five megawatt maximum, the
1 17 board may increase the amount of power that a utility is
1 18 required to own or purchase at the rates established pursuant
1 19 to section 476.43 if the board finds that a utility, including
1 20 a reorganized utility, exceeds its 1990 Iowa retail peak
1 21 demand by twenty percent and the additional power the utility
1 22 is required to purchase will encourage the development of
1 23 alternate energy production facilities and small hydro
1 24 facilities. The increase shall not exceed the utility's
1 25 increase in peak demand multiplied by the ratio of the
1 26 utility's share of the one hundred five megawatt maximum to
1 27 its 1990 Iowa retail peak demand.
1 28 a. An electric utility shall produce or purchase at least
1 29 the following percentages of its total annual Iowa retail
1 30 electric sales from alternate energy production facilities or
1 31 small hydro facilities:
1 32 (1) By December 31, 2014, fourteen percent.
1 33 (2) By December 31, 2020, twenty percent.
1 34 (3) By December 31, 2025, twenty=five percent.
1 35 b. Amounts produced or purchased in excess of the required
2 1 percentages in paragraph "a" may be sold or exchanged between
2 2 electric utilities for purposes of satisfying the
2 3 requirements, subject to procedures as determined by the board
2 4 by rule.
2 5 c. Of the total amounts of electricity to be produced or
2 6 purchased from alternate energy production facilities or small
2 7 hydro facilities required by paragraph "a", designated amounts
2 8 of electricity shall be derived from specified alternative and
2 9 renewable energy sources, as follows:
2 10 (1) Three hundred fifty megawatts shall be produced or
2 11 purchased from community=owned renewable energy projects,
2 12 pursuant to definition and criteria to be determined by the
2 13 board by rule, by 2014. The amount required to be produced or
2 14 purchased from community=owned renewable energy projects shall
2 15 increase to five hundred megawatts by 2020, and to six hundred
2 16 twenty=five megawatts by 2025, and be maintained each year
2 17 thereafter.
2 18 (2) Eighty megawatts shall be produced or purchased from a
2 19 sustainable, closed=loop biomass conversion facility, as
2 20 defined in section 476C.1, by 2014, and maintained each year
2 21 thereafter.
2 22 (3) Twenty megawatts shall be produced or purchased from a
2 23 methane gas recovery facility, as defined in section 476C.1,
2 24 by 2014, and maintained each year thereafter.
2 25 (4) Five megawatts shall be produced or purchased from a
2 26 solar energy conversion facility, as defined in section
2 27 476C.1, by 2014, and maintained each year thereafter. An
2 28 electric utility which maintains a solar energy utilization
2 29 project with which the electric utility is involved on July 1,
2 30 2008, may allocate megawatts derived therefrom in satisfying
2 31 this requirement.
2 32 d. Projects originated or utilized for the purpose of
2 33 meeting the requirements of paragraph "c", subparagraphs (2)
2 34 through (4), shall be eligible for the renewable energy tax
2 35 credit pursuant to chapter 476C, and the maximum capacity
3 1 restrictions of section 476C.3, subsection 4, shall not be
3 2 applicable to a facility determined to be eligible pursuant to
3 3 that section and supplying electricity produced or purchased
3 4 by a utility in satisfaction of the alternative and renewable
3 5 energy percentage purchase requirements of this section.
3 6 Sec. 2. Section 476C.3, subsection 4, Code 2007, is
3 7 amended to read as follows:
3 8 4. a. The maximum amount of nameplate generating capacity
3 9 of all wind energy conversion facilities the board may find
3 10 eligible under this chapter shall not exceed one hundred
3 11 eighty megawatts of nameplate generating capacity. The
3 12 maximum amount of energy production capacity equivalent of all
3 13 other facilities the board may find eligible under this
3 14 chapter shall not exceed a combined output of twenty megawatts
3 15 of nameplate generating capacity and one hundred sixty=seven
3 16 billion British thermal units of heat for a commercial
3 17 purpose. Of the maximum amount of energy production capacity
3 18 equivalent of all other facilities found eligible under this
3 19 chapter, fifty=five billion British thermal units of heat for
3 20 a commercial purpose shall be reserved for an eligible
3 21 facility that is a refuse conversion facility for processed,
3 22 engineered fuel from a multicounty solid waste management
3 23 planning area. The maximum amount of energy production
3 24 capacity the board may find eligible for a single refuse
3 25 conversion facility is fifty=five billion British thermal
3 26 units of heat for a commercial purpose.
3 27 b. The maximum amount of energy production capacity
3 28 limitations specified in paragraph "a" shall not be applicable
3 29 to an eligible facility supplying electricity produced or
3 30 purchased in satisfaction of the alternative and renewable
3 31 energy percentage purchase requirements contained in section
3 32 476.44, subsection 2.
3 33 EXPLANATION
3 34 This bill relates to alternative and renewable energy
3 35 production.
4 1 The bill requires electric utilities to produce or purchase
4 2 increasing percentages of their total annual Iowa retail
4 3 electric sales from alternative energy production facilities
4 4 or small hydro facilities, as defined in Code section 476.42,
4 5 by specified dates, and provides that amounts produced or
4 6 purchased in excess of the percentage requirements may be sold
4 7 or exchanged between utilities pursuant to procedures
4 8 determined by the Iowa utilities board by rule.
4 9 The bill provides that out of the production or purchase
4 10 requirements, designated amounts of electricity shall be
4 11 derived from specified sources of alternative and renewable
4 12 energy sources. Specifically, 350 megawatts are required to
4 13 be produced or purchased from community=owned renewable energy
4 14 projects, pursuant to a definition of such projects and
4 15 criteria relating to them as determined by the board by rule,
4 16 by 2014, and increased to 500 megawatts by 2020 and 625
4 17 megawatts by 2025 and maintained each year thereafter.
4 18 Additionally, 80 megawatts must be produced or purchased from
4 19 a sustainable, closed=loop biomass conversion facility by 2014
4 20 and maintained each year thereafter; 20 megawatts must be
4 21 produced or purchased from a methane gas recovery facility by
4 22 2014 and maintained each year thereafter; and 5 megawatts must
4 23 be produced or purchased from a solar energy conversion
4 24 facility and maintained each year thereafter. The bill
4 25 references Code section 476C relating to alternative and
4 26 renewable energy tax credits regarding a definition of biomass
4 27 conversion facility, methane gas recovery facility, and solar
4 28 energy conversion facility, and provides with reference to
4 29 solar energy that utilities which maintain current solar
4 30 energy utilization projects may allocate megawatts derived
4 31 from them in satisfying the 5 megawatt requirement.
4 32 The bill provides that biomass, methane, or solar projects
4 33 which are originated or utilized to meet the percentage and
4 34 megawatt requirements shall be eligible for the renewable
4 35 energy tax credits pursuant to Code chapter 476C without
5 1 application of statutory maximum capacity restrictions.
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