H.F. 2336 Section 1. NEW SECTION . 476.8A Net metering —— program 1 established —— requirements. 2 1. For the purposes of this section, unless the context 3 otherwise requires: 4 a. “Distributed generation facility” means a biomass 5 conversion facility, a solar energy conversion facility, or a 6 wind energy conversion facility as those terms are defined in 7 section 476C.1. 8 b. “Net metering” means the interconnection of a distributed 9 generation facility with an electric utility whereby 10 electricity produced by the facility and consumed on-site 11 offsets electricity which would otherwise be purchased from the 12 utility, and excess electricity is transferred to the utility’s 13 electrical grid. 14 2. Notwithstanding section 476.44 or any other provision of 15 law to the contrary, the board shall establish a net metering 16 program applicable to rate-regulated electric utilities. 17 The objective of the program shall be to facilitate the 18 interconnection of distributed generation facilities with 19 rate-regulated electric utilities pursuant to a streamlined and 20 expedited process. 21 3. a. The board shall utilize existing standard offer 22 contract forms to facilitate interconnection between a utility 23 and a distributed generation facility. The standard offer 24 contracts shall continue in effect for a twenty-year period, 25 subject to termination provisions for failure to perform, to 26 be established by the board by rule. The board shall ensure 27 that the contracts are calculated at reasonable and competitive 28 rates determined by the board and sufficient to facilitate 29 distributed generation facility financing. The forms shall be 30 made available for utilization by July 1, 2014. 31 b. The contracts shall be made available to any distributed 32 generation facility with up to twenty megawatts of nameplate 33 generating capacity which seeks to enter into a net metering 34 agreement with a utility, and which meets the requirements 35 -1- LSB 5956YH (2) 85 rn/nh 1/ 4

H.F. 2336 of section 476C.1, subsection 6, paragraph “a” , and section 1 476C.1, subsection 6, paragraph “b” , subparagraphs (1) through 2 (3) and subparagraphs (6) and (7), with regard to fifty-one 3 percent ownership in the facility being comprised of one or 4 more of the individuals or entities identified pursuant to 5 those subparagraphs. 6 c. The standard offer contracts shall not contain any 7 provision or impose any requirement which could create 8 or constitute an unreasonable barrier to or burden on the 9 development of net metering in this state. 10 4. A distributed generation facility seeking to 11 interconnect with an electric utility pursuant to a net 12 metering agreement shall submit an application to be developed 13 by the board. The board shall establish an expedited approval 14 process and program requirements by rule. The board shall 15 not place limits on the aggregate capacity of net-metered 16 systems as a percentage of the utility’s peak demand and shall 17 allow indefinite net excess generation carryover at the rates 18 established pursuant to subsection 3. The board shall not 19 impose special fees applicable specifically to net metering. 20 The board shall evaluate the merits and feasibility of 21 providing for third-party ownership of distributed generation 22 facilities and meter aggregation. 23 5. A rate-regulated electric utility shall be purchasing a 24 minimum of five percent of the utility’s required electrical 25 output from distributed generation facilities pursuant to net 26 metering agreements by July 1, 2019. A rate-regulated electric 27 utility participating in net metering pursuant to this section 28 shall submit annual filings during the five-year interval 29 following establishment of the net metering program pursuant to 30 this section demonstrating progress toward attainment of this 31 requirement. 32 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 33 immediate importance, takes effect upon enactment. 34 EXPLANATION 35 -2- LSB 5956YH (2) 85 rn/nh 2/ 4

H.F. 2336 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill establishes a net metering program applicable to 3 rate-regulated electric utilities. The bill provides that the 4 objective of the program is to facilitate the interconnection 5 of distributed generation facilities with rate-regulated 6 electric utilities pursuant to a streamlined and expedited 7 process. 8 The bill defines “distributed generation facility” to mean 9 a biomass conversion facility, a solar energy conversion 10 facility, or a wind energy conversion facility as those 11 terms are defined in Code section 476C.1. The bill defines 12 “net metering” to mean the interconnection of a distributed 13 generation facility with an electric utility whereby 14 electricity produced by the facility and consumed on-site 15 offsets electricity which would otherwise be purchased from the 16 utility, and excess electricity is transferred to the utility’s 17 electrical grid. 18 The bill provides that the utilities board shall utilize 19 existing standard offer contract forms to facilitate 20 interconnection between a rate-regulated electric utility and a 21 distributed generation facility, which would continue in effect 22 for 20 years and be calculated at reasonable and competitive 23 rates. Any distributed generation facility, as defined in the 24 bill, of up to 20 megawatts of nameplate generating capacity 25 would be eligible for interconnection, provided the facility 26 met ownership requirements contained in specified provisions 27 of Code section 476C.1. The contract forms shall not contain 28 any provision or impose any requirement which could create 29 or constitute an unreasonable barrier to or burden on the 30 development of net metering in Iowa. 31 The bill provides that a distributed generation facility 32 seeking to interconnect with an electric utility shall submit 33 an application to be developed by the board, and that the board 34 shall establish an expedited screening and approval process 35 -3- LSB 5956YH (2) 85 rn/nh 3/ 4

H.F. 2336 and program requirements by rule. The bill specifies that 1 the board shall not place limits on the aggregate capacity 2 of net-metered systems as a percentage of the utility’s peak 3 demand, shall allow indefinite net excess generation carryover, 4 shall not impose special fees applicable specifically to net 5 metering, and shall evaluate the merits and feasibility of 6 providing for third-party ownership and meter aggregation. 7 The bill requires rate-regulated electric utilities to be 8 purchasing a minimum of 5 percent of their required electrical 9 output pursuant to net metering agreements by July 1, 2019. 10 The utilities must submit annual filings during the five-year 11 interval following establishment of the net metering program 12 demonstrating progress toward attainment of this requirement. 13 -4- LSB 5956YH (2) 85 rn/nh 4/ 4