House Study Bill 599 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON SODERBERG) A BILL FOR An Act relating to eligibility for the renewable energy tax 1 credit. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5577YC (2) 84 rn/sc

H.F. _____ Section 1. Section 476C.1, Code Supplement 2011, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 4A. “Cogeneration facility” means a 3 facility in this state in which the same energy source is 4 utilized for the sequential generation of electrical or 5 mechanical power in combination with steam, heat, or other 6 forms of useful energy. 7 Sec. 2. Section 476C.1, subsection 6, unnumbered paragraph 8 1, Code Supplement 2011, is amended to read as follows: 9 “Eligible renewable energy facility” means a wind energy 10 conversion facility, a biogas recovery facility, a biomass 11 conversion facility, a methane gas recovery facility, a solar 12 energy conversion facility, or a refuse conversion facility , 13 or a natural gas cogeneration facility that meets all of the 14 following requirements: 15 Sec. 3. Section 476C.3, subsection 4, paragraph b, Code 16 Supplement 2011, is amended to read as follows: 17 b. The maximum amount of energy production capacity 18 equivalent of all other facilities the board may find eligible 19 under this chapter shall not exceed a combined output of 20 fifty-three megawatts of nameplate generating capacity and 21 one hundred sixty-seven billion British thermal units of heat 22 for a commercial purpose. Of the maximum amount of energy 23 production capacity equivalent of all other facilities found 24 eligible under this chapter, no more than ten megawatts of 25 nameplate generating capacity or energy production capacity 26 equivalent shall be allocated to any one facility. Of the 27 maximum amount of energy production capacity equivalent of all 28 other facilities found eligible under this chapter , fifty-five 29 billion British thermal units of heat for a commercial purpose 30 shall be reserved for an eligible facility that is a refuse 31 conversion facility for processed, engineered fuel from a 32 multicounty solid waste management planning area. The maximum 33 amount of energy production capacity the board may find 34 eligible for a single refuse conversion facility is fifty-five 35 -1- LSB 5577YC (2) 84 rn/sc 1/ 3

H.F. _____ billion British thermal units of heat for a commercial purpose. 1 Of the maximum amount of energy production capacity equivalent 2 of all other facilities found eligible under this chapter, an 3 amount equivalent to ten megawatts of nameplate generating 4 capacity shall be reserved for eligible renewable energy 5 natural gas cogeneration facilities incorporated within or 6 associated with an ethanol cogeneration plant engaged in the 7 sale of ethanol to states to meet assist the ethanol plant in 8 meeting a low carbon fuel standard. 9 EXPLANATION 10 This bill modifies provisions relating to reserving 11 specified amounts of energy production capacity equivalent for 12 designated facilities in qualifying for the renewable energy 13 tax credit provided in Code chapter 476C. 14 The Code chapter provides that the maximum amount of energy 15 production capacity equivalent of nonwind energy facilities 16 eligible for the tax credit shall not exceed a specified 17 combined output level. Currently, out of this amount, a 18 maximum of 10 megawatts of nameplate generating capacity is 19 reserved for eligible renewable energy facilities incorporated 20 within or associated with an ethanol cogeneration plant 21 engaged in the sale of ethanol to states to meet a low carbon 22 fuel standard. The bill modifies this provision to restrict 23 the reserved amount to natural gas cogeneration facilities 24 associated with the ethanol plant. The bill also deletes 25 reference to an ethanol “cogeneration” plant, and changes the 26 provision that the plant is engaged in the sale of ethanol to 27 states to meet a low carbon fuel standard to specify that the 28 plant is engaged in the sale of ethanol, without reference to 29 other states, in order to assist an ethanol plant in meeting a 30 low carbon fuel standard. 31 The bill defines “cogeneration facility” to mean a facility 32 in this state in which the same energy source is utilized for 33 the sequential generation of electrical or mechanical power 34 in combination with steam, heat, or other forms of useful 35 -2- LSB 5577YC (2) 84 rn/sc 2/ 3

H.F. _____ energy. The bill adds natural gas cogeneration facilities to 1 the list of facilities designated as eligible renewable energy 2 facilities qualifying for the renewable energy tax credit. 3 -3- LSB 5577YC (2) 84 rn/sc 3/ 3