SF 2343 (LSB 5620SV (2) 85)

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 energy tax credit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476C.1, subsection 6, paragraph d, Code 2014, is amended to read as follows:
   d.  Was initially placed into service on or after July 1, 2005, and before January 1, 2015 2017.
    Sec. 2.  Section 476C.3, subsection 5, Code 2014, is amended to read as follows:
   5.  a.  Notwithstanding the definition of “eligible renewable energy facility” in section 476C.1, subsection 6, unnumbered paragraph 1, of the maximum amount of energy production capacity equivalent of all other facilities found eligible pursuant to subsection 4, paragraph “b”, an amount equivalent to ten megawatts of nameplate generating capacity shall be reserved for natural gas, methane and landfill gas, or biogas cogeneration facilities incorporated within or associated with an ethanol plant to assist the ethanol plant in meeting a low carbon fuel standard.  Thermal heat generated by the cogeneration facility and used for a commercial purpose may be counted toward satisfying the ten megawatt reservation requirement.
   b.  A facility that has been issued a tax credit certificate for a natural gas cogeneration facility incorporated within or associated with an ethanol plant pursuant to paragraph “a” prior to July 1, 2014, shall not be required to submit a new application if the facility constructs or utilizes methane and landfill gas or biogas cogeneration facilities on or after that date and continues to meet the requirements of an eligible renewable energy facility.
    Sec. 3.  Section 476C.5, Code 2014, is amended to read as follows:
   476C.5  Certificate issuance period.

   A producer or purchaser of renewable energy may receive renewable energy tax credit certificates for a ten-year period for each eligible renewable energy facility under this chapter. The ten-year period for issuance of the tax credit certificates begins with the date the purchaser of renewable energy first purchases electricity, hydrogen fuel, methane gas or other biogas used to generate electricity, or heat for commercial purposes from the eligible renewable energy facility for which a tax credit is issued under this chapter, or the date the producer of the renewable energy first uses the energy produced by the eligible renewable energy facility for on-site consumption. Renewable energy tax credit certificates shall not be issued for renewable energy purchased or produced for on-site consumption after December 31, 2024 2026.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the renewable energy tax credit established in Code chapter 476C. 
   Currently, to be considered a renewable energy facility eligible for qualification for the tax credit, a facility must have been initially placed into service on or after July 1, 2005, and before January 1, 2015. The bill extends the latter date by two years, to January 1, 2017, resulting in an additional two years for a facility to be placed into service and qualify for the credit. The bill makes a corresponding change to extend the 10-year duration during which a producer or purchaser of renewable energy may receive renewable energy tax credit certificates from an end date of December 31, 2024, to December 31, 2026. 
   Additionally, the bill modifies provisions relating to the reservation of a specified amount of renewable energy tax credits being reserved for specified renewable energy facilities. Currently, an amount equivalent to 10 megawatts of nameplate generating capacity is reserved for natural gas cogeneration facilities incorporated within or associated with an ethanol plant to assist the plant in meeting a low carbon fuel standard. The bill expands facilities to which the reserved amount applies to include methane and landfill gas and biogas cogeneration facilities, and provides that thermal heat generated by the cogeneration facility may be counted toward satisfying the 10 megawatt reservation requirement. 
   The bill further provides that a facility which has been issued a tax credit certificate for a natural gas cogeneration facility prior to July 1, 2014, does not need to reapply for a certificate if the facility constructs or utilizes methane and landfill gas or biogas cogeneration facilities on or after July 1, 2014, and continues to meet all other requirements applicable to an eligible renewable energy facility.