Senate File 2343 - Introduced SENATE FILE 2343 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 2032) A BILL FOR An Act relating to qualification requirements for the renewable 1 energy tax credit. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5620SV (2) 85 rn/sc

S.F. 2343 Section 1. Section 476C.1, subsection 6, paragraph d, Code 1 2014, is amended to read as follows: 2 d. Was initially placed into service on or after July 1, 3 2005, and before January 1, 2015 2017 . 4 Sec. 2. Section 476C.3, subsection 5, Code 2014, is amended 5 to read as follows: 6 5. a. Notwithstanding the definition of “eligible renewable 7 energy facility” in section 476C.1, subsection 6 , unnumbered 8 paragraph 1, of the maximum amount of energy production 9 capacity equivalent of all other facilities found eligible 10 pursuant to subsection 4 , paragraph “b” , an amount equivalent 11 to ten megawatts of nameplate generating capacity shall be 12 reserved for natural gas , methane and landfill gas, or biogas 13 cogeneration facilities incorporated within or associated 14 with an ethanol plant to assist the ethanol plant in meeting 15 a low carbon fuel standard. Thermal heat generated by the 16 cogeneration facility and used for a commercial purpose may 17 be counted toward satisfying the ten megawatt reservation 18 requirement. 19 b. A facility that has been issued a tax credit certificate 20 for a natural gas cogeneration facility incorporated within 21 or associated with an ethanol plant pursuant to paragraph “a” 22 prior to July 1, 2014, shall not be required to submit a new 23 application if the facility constructs or utilizes methane and 24 landfill gas or biogas cogeneration facilities on or after that 25 date and continues to meet the requirements of an eligible 26 renewable energy facility. 27 Sec. 3. Section 476C.5, Code 2014, is amended to read as 28 follows: 29 476C.5 Certificate issuance period. 30 A producer or purchaser of renewable energy may receive 31 renewable energy tax credit certificates for a ten-year period 32 for each eligible renewable energy facility under this chapter . 33 The ten-year period for issuance of the tax credit certificates 34 begins with the date the purchaser of renewable energy first 35 -1- LSB 5620SV (2) 85 rn/sc 1/ 3

S.F. 2343 purchases electricity, hydrogen fuel, methane gas or other 1 biogas used to generate electricity, or heat for commercial 2 purposes from the eligible renewable energy facility for 3 which a tax credit is issued under this chapter , or the date 4 the producer of the renewable energy first uses the energy 5 produced by the eligible renewable energy facility for on-site 6 consumption. Renewable energy tax credit certificates shall 7 not be issued for renewable energy purchased or produced for 8 on-site consumption after December 31, 2024 2026 . 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to the renewable energy tax credit 13 established in Code chapter 476C. 14 Currently, to be considered a renewable energy facility 15 eligible for qualification for the tax credit, a facility 16 must have been initially placed into service on or after July 17 1, 2005, and before January 1, 2015. The bill extends the 18 latter date by two years, to January 1, 2017, resulting in an 19 additional two years for a facility to be placed into service 20 and qualify for the credit. The bill makes a corresponding 21 change to extend the 10-year duration during which a producer 22 or purchaser of renewable energy may receive renewable energy 23 tax credit certificates from an end date of December 31, 2024, 24 to December 31, 2026. 25 Additionally, the bill modifies provisions relating to 26 the reservation of a specified amount of renewable energy 27 tax credits being reserved for specified renewable energy 28 facilities. Currently, an amount equivalent to 10 megawatts 29 of nameplate generating capacity is reserved for natural gas 30 cogeneration facilities incorporated within or associated 31 with an ethanol plant to assist the plant in meeting a low 32 carbon fuel standard. The bill expands facilities to which the 33 reserved amount applies to include methane and landfill gas and 34 biogas cogeneration facilities, and provides that thermal heat 35 -2- LSB 5620SV (2) 85 rn/sc 2/ 3

S.F. 2343 generated by the cogeneration facility may be counted toward 1 satisfying the 10 megawatt reservation requirement. 2 The bill further provides that a facility which has been 3 issued a tax credit certificate for a natural gas cogeneration 4 facility prior to July 1, 2014, does not need to reapply for 5 a certificate if the facility constructs or utilizes methane 6 and landfill gas or biogas cogeneration facilities on or after 7 July 1, 2014, and continues to meet all other requirements 8 applicable to an eligible renewable energy facility. 9 -3- LSB 5620SV (2) 85 rn/sc 3/ 3