House File 2365 - Introduced HOUSE FILE 2365 BY KAJTAZOVIC A BILL FOR An Act creating a school solar generation revolving loan and 1 grant program and fund within the Iowa energy center to fund 2 solar generation projects and making an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5618YH (2) 84 mm/sc

H.F. 2365 Section 1. Section 266.39C, Code Supplement 2011, is 1 amended by adding the following new subsection: 2 NEW SUBSECTION . 7. The Iowa energy center shall establish 3 and administer the school solar generation revolving loan and 4 grant program pursuant to section 473.21. 5 Sec. 2. NEW SECTION . 473.21 School solar generation 6 revolving loan and grant program. 7 1. The Iowa energy center created under section 266.39C 8 shall establish and administer a school solar generation 9 revolving loan and grant program to encourage solar generation 10 projects at school districts and Iowa community colleges 11 within the state. For purposes of this section, “solar 12 generation project” means the purchase and installation 13 at a school district or Iowa community college of a solar 14 photovoltaic system or systems that in the aggregate will 15 produce electricity which has a nameplate generating capacity 16 not in excess of one hundred kilowatts. 17 2. a. A school solar generation revolving loan and grant 18 fund is created in the office of the treasurer of state to be 19 administered by the Iowa energy center. 20 b. The fund shall consist of any moneys appropriated 21 or otherwise directed to the fund. Section 8.33 shall not 22 apply to moneys in the fund. Notwithstanding section 12C.7, 23 subsection 2, interest or earnings on moneys in the fund shall 24 be credited to the fund. 25 c. Moneys in the fund shall be used to provide grants 26 and loans to fund solar generation projects as provided in 27 subsection 3. 28 3. Any school district or Iowa community college in this 29 state may apply to the Iowa energy center to receive a grant 30 and loan for a solar generation project, which grant and loan 31 shall be available as follows: 32 a. A school district or Iowa community college may receive a 33 grant for an amount not to exceed forty percent of the purchase 34 and installation costs associated with that part of the solar 35 -1- LSB 5618YH (2) 84 mm/sc 1/ 3

H.F. 2365 generation project that will produce electricity which has a 1 nameplate generating capacity of ten kilowatts or less. 2 b. (1) A school district or Iowa community college may 3 receive a loan for an amount not to exceed forty percent of the 4 remaining purchase and installation costs associated with the 5 solar generation project that were not used to calculate the 6 grant pursuant to paragraph “a” . 7 (2) Each loan under this paragraph “b” shall be for a 8 period not to exceed twenty years, shall bear no interest, 9 and shall be repayable to the fund created under this section 10 in installments as determined by the Iowa energy center. 11 The interest rate upon delinquent payments shall accelerate 12 immediately to the current legal usury limit. 13 (3) Any loan made pursuant to this program shall immediately 14 become due for payment upon sale of the solar photovoltaic 15 system for which the loan was made. 16 Sec. 3. SCHOOL SOLAR GENERATION REVOLVING LOAN AND GRANT 17 PROGRAM —— APPROPRIATION. 18 1. There is appropriated from the general fund of the state 19 to the school solar generation revolving loan and grant fund 20 in section 473.21 for the fiscal year beginning July 1, 2012, 21 the following amount, or so much thereof as is necessary, to be 22 used for the purposes designated: 23 For providing grants and loans to fund solar generation 24 projects as provided in section 473.21: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 26 Notwithstanding section 8.33, moneys appropriated pursuant 27 to this section shall not revert but shall remain available 28 to the school solar generation revolving loan and grant fund 29 for the purposes designated until expended. Notwithstanding 30 section 12C.7, subsection 2, earnings or interest on moneys 31 appropriated pursuant to this section shall be credited to the 32 school solar generation revolving loan and grant fund and used 33 for the purposes designated until expended. 34 EXPLANATION 35 -2- LSB 5618YH (2) 84 mm/sc 2/ 3

H.F. 2365 This bill establishes a school solar generation revolving 1 loan and grant program within the Iowa energy center, creates 2 a corresponding fund, and makes a $5 million appropriation to 3 the fund. Moneys in the fund will be used to provide loans 4 and grants to school districts and Iowa community colleges 5 to invest in solar generation projects. “Solar generation 6 project” is defined as the purchase and installation of a solar 7 photovoltaic system or systems that in the aggregate will 8 produce electricity which has a nameplate generating capacity 9 not in excess of 100 kilowatts. 10 School districts or Iowa community colleges may apply to the 11 Iowa energy center to receive a grant and loan for the purchase 12 and installation costs of a solar generation project. 13 A grant not to exceed 40 percent of the purchase and 14 installation costs may be provided for that part of a solar 15 generation project that will produce electricity which has a 16 nameplate generating capacity of up to 10 kilowatts. If the 17 solar generation project will produce electricity which has a 18 nameplate generating capacity of greater than 10 kilowatts, 19 a school district or Iowa community college may receive the 20 grant listed above and a loan not to exceed 40 percent of the 21 remaining purchase and installation costs that are in excess of 22 those established for the grant. 23 Each loan provided in the bill shall be for a period not 24 to exceed 20 years, shall bear no interest, and shall be 25 repayable to the fund in installments determined by the Iowa 26 energy center. The interest rate upon delinquent payments 27 shall accelerate immediately to the current legal usury limit. 28 Loans shall become due immediately upon the sale of the solar 29 photovoltaic system for which the loan was made. 30 -3- LSB 5618YH (2) 84 mm/sc 3/ 3