H.F. 672 Section 1. Section 476B.5, subsection 4, Code 2011, is 1 amended to read as follows: 2 4. The maximum amount of nameplate generating capacity of 3 all qualified facilities the board may find eligible under 4 this chapter shall not exceed one hundred fifty megawatts of 5 nameplate generating capacity. 6 Sec. 2. Section 476C.1, subsection 6, paragraph d, Code 7 2011, is amended to read as follows: 8 d. Was initially placed into service on or after July 1, 9 2005, and before January 1, 2012 2015 . 10 Sec. 3. Section 476C.1, subsection 6, Code 2011, is amended 11 by adding the following new paragraphs: 12 NEW PARAGRAPH . e. For applications filed on or after July 13 1, 2011, is a facility of not less than three-fourths megawatts 14 of nameplate generating capacity or the energy production 15 capacity equivalent if all or a portion of the renewable energy 16 produced is for on-site consumption by the producer. 17 NEW PARAGRAPH . f. For applications filed on or after 18 July 1, 2011, except for wind energy conversion facilities, 19 is a facility of no greater than five megawatts of nameplate 20 generating capacity or the energy production capacity 21 equivalent. 22 Sec. 4. Section 476C.1, subsection 8, Code 2011, is amended 23 to read as follows: 24 8. “Heat for a commercial purpose” means the heat in British 25 thermal unit equivalents from refuse-derived fuel, methane, or 26 other biogas produced in this state either for commercial use 27 by a producer for on-site consumption or sold to a purchaser of 28 renewable energy for use for a commercial purpose in this state 29 or for use by an institution in this state. 30 Sec. 5. Section 476C.2, subsection 1, Code 2011, is amended 31 to read as follows: 32 1. A producer or purchaser of renewable energy may 33 receive renewable energy tax credits under this chapter in 34 an amount equal to one and one-half cents per kilowatt-hour 35 -1- LSB 2705HZ (3) 84 rn/nh 1/ 7

H.F. 672 of electricity, or four dollars and fifty cents per million 1 British thermal units of heat for a commercial purpose, or 2 four dollars and fifty cents per million British thermal units 3 of methane gas or other biogas used to generate electricity, 4 or one dollar and forty-four cents per one thousand standard 5 cubic feet of hydrogen fuel generated by and purchased from 6 an eligible renewable energy facility or used for on-site 7 consumption by the producer . 8 Sec. 6. Section 476C.3, subsection 1, paragraph e, Code 9 2011, is amended to read as follows: 10 e. A Except when the renewable energy is produced for 11 on-site consumption by the producer, a copy of the power 12 purchase agreement or other agreement to purchase electricity, 13 hydrogen fuel, methane or other biogas, or heat for a 14 commercial purpose which shall designate either the producer 15 or purchaser of renewable energy as eligible to apply for the 16 renewable energy tax credit. 17 Sec. 7. Section 476C.3, subsection 3, Code 2011, is amended 18 to read as follows: 19 3. a. A facility that is not operational within thirty 20 months after issuance of an approval for the facility by 21 the board shall cease to be an eligible renewable energy 22 facility. However, a wind energy conversion facility that is 23 approved as eligible under this section but is not operational 24 within eighteen months due to the unavailability of necessary 25 equipment shall be granted an additional twenty-four months to 26 become operational. 27 b. A facility which notifies the board prior to the 28 expiration of the time periods specified in paragraph “a” 29 that the facility intends to become operational and wishes 30 to preserve its eligibility shall be granted a twelve-month 31 extension. An extension may be renewed for succeeding 32 twelve-month periods if the board is notified prior to the 33 expiration of the extension of the continued intention to 34 become operational during the succeeding period of extension. 35 -2- LSB 2705HZ (3) 84 rn/nh 2/ 7

H.F. 672 c. If the owner of a facility discontinues efforts to 1 achieve operational status, the owner shall notify the board 2 within thirty days of such discontinuance that the owner no 3 longer seeks a tax credit pursuant to this chapter. Upon 4 receipt of such notification, the board shall no longer 5 consider the facility as an eligible renewable energy facility 6 under this chapter. 7 d. A facility that is granted and thereafter loses approval 8 may reapply to the board for a new determination. 9 Sec. 8. Section 476C.3, subsection 4, Code 2011, is amended 10 to read as follows: 11 4. The maximum amount of nameplate generating capacity 12 of all wind energy conversion facilities the board may find 13 eligible under this chapter shall not exceed three hundred 14 thirty sixty-three megawatts of nameplate generating capacity. 15 The maximum amount of energy production capacity equivalent 16 of all other facilities the board may find eligible under 17 this chapter shall not exceed a combined output of twenty 18 fifty-three megawatts of nameplate generating capacity and one 19 hundred sixty-seven billion British thermal units of heat for a 20 commercial purpose. Of the maximum amount of energy production 21 capacity equivalent of all other facilities found eligible 22 under this chapter , fifty-five billion British thermal units of 23 heat for a commercial purpose shall be reserved for an eligible 24 facility that is a refuse conversion facility for processed, 25 engineered fuel from a multicounty solid waste management 26 planning area. The maximum amount of energy production 27 capacity the board may find eligible for a single refuse 28 conversion facility is fifty-five billion British thermal units 29 of heat for a commercial purpose. 30 Sec. 9. Section 476C.4, subsections 1 and 2, Code 2011, are 31 amended to read as follows: 32 1. A producer or purchaser of renewable energy may apply to 33 the board for the renewable energy tax credit by submitting to 34 the board all of the following: 35 -3- LSB 2705HZ (3) 84 rn/nh 3/ 7

H.F. 672 a. A completed application in a form prescribed by the 1 board. 2 b. A copy of the determination granting approval of the 3 facility as an eligible renewable energy facility by the board. 4 c. A copy of a signed power purchase agreement or other 5 agreement to purchase electricity, hydrogen fuel, methane or 6 other biogas, or heat for a commercial purpose from an eligible 7 renewable energy facility which shall designate either the 8 producer or purchaser of renewable energy as eligible to apply 9 for the renewable energy tax credit. 10 d. Sufficient documentation that the electricity, heat for 11 a commercial purpose, methane gas or other biogas, or hydrogen 12 fuel has been generated by the eligible renewable energy 13 facility and sold to the purchaser of renewable energy. 14 e. To the extent the produced electricity, hydrogen fuel, 15 methane or other biogas, or heat for a commercial purpose is 16 used for on-site consumption, the requirements of paragraphs 17 “c” and “d” shall not be applicable. For such renewable energy 18 production, the owner must submit a certification under penalty 19 of perjury that the claimed amount of electricity, hydrogen 20 fuel, methane or other biogas, or heat for a commercial purpose 21 was produced by the eligible facility and consumed by the 22 owner. 23 e. f. Any other information the board deems necessary. 24 2. The board shall notify the department of the amount 25 of kilowatt-hours, British thermal units of heat for a 26 commercial purpose, British thermal units of methane gas or 27 other biogas used to generate electricity, or standard cubic 28 feet of hydrogen fuel generated and purchased from an eligible 29 renewable energy facility or generated and used by the producer 30 for on-site consumption . The department shall calculate the 31 amount of the tax credit for which the applicant is eligible 32 and shall issue the tax credit certificate for that amount or 33 notify the applicant in writing of its refusal to do so. An 34 applicant whose application is denied may file an appeal with 35 -4- LSB 2705HZ (3) 84 rn/nh 4/ 7

H.F. 672 the department within sixty days from the date of the denial 1 pursuant to the provisions of chapter 17A . 2 Sec. 10. Section 476C.4, subsection 5, Code 2011, is amended 3 to read as follows: 4 5. The department shall not issue a tax credit certificate 5 if the facility approved by the board as an eligible renewable 6 energy facility is not operational within eighteen months after 7 the approval is issued , subject to the extension provisions of 8 section 476C.3, subsection 3 . 9 Sec. 11. Section 476C.5, Code 2011, is amended to read as 10 follows: 11 476C.5 Certificate issuance period. 12 A producer or purchaser of renewable energy may receive 13 renewable energy tax credit certificates for a ten-year period 14 for each eligible renewable energy facility under this chapter . 15 The ten-year period for issuance of the tax credit certificates 16 begins with the date the purchaser of renewable energy first 17 purchases electricity, hydrogen fuel, methane gas or other 18 biogas used to generate electricity, or heat for commercial 19 purposes from the eligible renewable energy facility for 20 which a tax credit is issued under this chapter , or the date 21 the producer of the renewable energy first uses the energy 22 produced by the eligible renewable energy facility for on-site 23 consumption . Renewable energy tax credit certificates shall 24 not be issued for renewable energy purchased or produced for 25 on-site consumption after December 31, 2021 2024 . 26 EXPLANATION 27 This bill relates to tax credits issued for eligible and 28 qualifying wind energy and renewable energy facilities. 29 The bill reduces the maximum amount of nameplate generating 30 capacity for all qualified facilities determined eligible to 31 receive the wind energy tax credit pursuant to Code chapter 32 476B from 150 megawatts to 50 megawatts, and increases the 33 maximum amount of nameplate generating capacity for all wind 34 energy conversion facilities determined eligible to receive 35 -5- LSB 2705HZ (3) 84 rn/nh 5/ 7

H.F. 672 the renewable energy tax credit issued pursuant to Code 1 chapter 476C from 330 to 363 megawatts. The bill additionally 2 increases the maximum amount of energy production capacity 3 equivalent of all renewable energy facilities other than wind 4 energy conversion facilities determined eligible to receive the 5 renewable energy tax credit from 20 megawatts combined with 6 other specified British thermal units to 53 megawatts. 7 The bill extends the time period during which an eligible 8 renewable energy facility seeking to qualify for the renewable 9 energy tax credit shall have been placed in service by three 10 years to before January 1, 2015, and correspondingly extends 11 the existing ten-year duration for credit issuance to December 12 31, 2024. 13 The bill adds renewable energy produced for on-site 14 consumption for a commercial purpose as a form of energy 15 produced by a qualifying facility which may apply for the 16 credit on or after July 1, 2011, provided that the facility is 17 capable of producing not less than three-fourths megawatts of 18 nameplate generating capacity or the energy production capacity 19 equivalent, and makes conforming changes in Code chapter 476C. 20 The bill restricts facilities other than wind energy conversion 21 facilities applying for the credit on or after July 1, 2011, to 22 a nameplate generating capacity of no greater than 5 megawatts. 23 The bill provides that to the extent that electricity, 24 hydrogen fuel, methane or other biogas, or heat for a 25 commercial purpose is used for on-site consumption, current 26 application requirements relating to submission of a signed 27 power purchase agreement with a utility and documentation 28 regarding the sale of the energy produced are not applicable. 29 Instead, the bill provides that the owner must submit a 30 certification under penalty of perjury that the claimed amount 31 of electricity, hydrogen fuel, methane or other biogas, or heat 32 for a commercial purpose was in fact produced by the eligible 33 facility and consumed by the owner. 34 The bill also provides that a facility which notifies 35 -6- LSB 2705HZ (3) 84 rn/nh 6/ 7

H.F. 672 the Iowa utilities board that the facility intends to become 1 operational and wishes to preserve its eligibility for a tax 2 credit under Code chapter 476C shall be granted a 12-month 3 extension, beyond a current 18-month maximum, which may 4 be renewed for succeeding 12-month periods if the board is 5 notified prior to the expiration of the period of the continued 6 intention to become operational. The bill specifies that 7 if the owner of a facility discontinues efforts to achieve 8 operational status, the owner shall notify the board within 9 30 days, and that upon receipt of such notification the board 10 shall immediately remove the facility from eligible status. 11 -7- LSB 2705HZ (3) 84 rn/nh 7/ 7