HF 2406 (LSB 5577HV (1) 84)

HOUSE FILE 2406

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 599)

A BILL FOR

An Act relating to eligibility for the renewable energy tax credit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476C.1, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  “Cogeneration facility” means a facility in this state in which the same energy source is utilized for the sequential generation of electrical or mechanical power in combination with steam, heat, or other forms of useful energy.
    Sec. 2.  Section 476C.1, subsection 6, unnumbered paragraph 1, Code Supplement 2011, is amended to read as follows:
   “Eligible renewable energy facility” means a wind energy conversion facility, a biogas recovery facility, a biomass conversion facility, a methane gas recovery facility, a solar energy conversion facility, or a refuse conversion facility, or a natural gas cogeneration facility that meets all of the following requirements:
    Sec. 3.  Section 476C.3, subsection 4, paragraph b, Code Supplement 2011, is amended to read as follows:
   b.  The maximum amount of energy production capacity equivalent of all other facilities the board may find eligible under this chapter shall not exceed a combined output of fifty-three megawatts of nameplate generating capacity and one hundred sixty-seven billion British thermal units of heat for a commercial purpose. Of the maximum amount of energy production capacity equivalent of all other facilities found eligible under this chapter, no more than ten megawatts of nameplate generating capacity or energy production capacity equivalent shall be allocated to any one facility. Of the maximum amount of energy production capacity equivalent of all other facilities found eligible under this chapter, fifty-five billion British thermal units of heat for a commercial purpose shall be reserved for an eligible facility that is a refuse conversion facility for processed, engineered fuel from a multicounty solid waste management planning area. The maximum amount of energy production capacity the board may find eligible for a single refuse conversion facility is fifty-five billion British thermal units of heat for a commercial purpose. Of the maximum amount of energy production capacity equivalent of all other facilities found eligible under this chapter, an amount equivalent to ten megawatts of nameplate generating capacity shall be reserved for eligible renewable energy
 
natural gas cogeneration facilities incorporated within or associated with an ethanol cogeneration plant engaged in the sale of ethanol to states to meet
 
assist the ethanol plant in meeting a low carbon fuel standard.
EXPLANATION
   This bill modifies provisions relating to reserving specified amounts of energy production capacity equivalent for designated facilities in qualifying for the renewable energy tax credit provided in Code chapter 476C.
   The Code chapter provides that the maximum amount of energy production capacity equivalent of nonwind energy facilities eligible for the tax credit shall not exceed a specified combined output level. Currently, out of this amount, a maximum of 10 megawatts of nameplate generating capacity is reserved for eligible renewable energy facilities incorporated within or associated with an ethanol cogeneration plant engaged in the sale of ethanol to states to meet a low carbon fuel standard. The bill modifies this provision to restrict the reserved amount to natural gas cogeneration facilities associated with the ethanol plant. The bill also deletes reference to an ethanol “cogeneration” plant, and changes the provision that the plant is engaged in the sale of ethanol to states to meet a low carbon fuel standard to specify that the plant is engaged in the sale of ethanol, without reference to other states, in order to assist an ethanol plant in meeting a low carbon fuel standard.
   The bill defines “cogeneration facility” to mean a facility in this state in which the same energy source is utilized for the sequential generation of electrical or mechanical power in combination with steam, heat, or other forms of useful energy. The bill adds natural gas cogeneration facilities to the list of facilities designated as eligible renewable energy facilities qualifying for the renewable energy tax credit.