S.F. _____ Section 1. Section 476B.1, subsection 4, paragraph c, Code 1 2013, is amended to read as follows: 2 c. Was originally placed in service on or after July 1, 3 2005, but before July 1, 2012 2013 . 4 Sec. 2. Section 476B.5, subsection 4, Code 2013, is amended 5 to read as follows: 6 4. a. The maximum amount of nameplate generating capacity 7 of all qualified facilities the board may find eligible under 8 this chapter shall not exceed fifty megawatts of nameplate 9 generating capacity. 10 b. If additional capacity becomes available within the 11 capacity restrictions of paragraph “a” of this subsection, the 12 amount of available capacity, plus an additional amount of 13 capacity necessary to render a facility fully operational, if 14 applicable, may be awarded to the applicant who has awaited 15 available capacity for the longest period since receiving 16 approval. 17 Sec. 3. Section 476C.1, subsection 6, paragraph d, Code 18 2013, is amended to read as follows: 19 d. Was initially placed into service on or after July 1, 20 2005, and before January 1, 2015 2020 . 21 Sec. 4. Section 476C.3, subsection 4, Code 2013, is amended 22 to read as follows: 23 4. a. The maximum amount of nameplate generating capacity 24 of all wind energy conversion facilities the board may find 25 eligible under this chapter shall not exceed three hundred 26 sixty-three megawatts of nameplate generating capacity. 27 Beginning January 1, 2015, through December 31, 2019, this 28 maximum shall be increased each year by fifteen megawatts over 29 the maximum in the previous year. Beginning January 1, 2020, 30 the maximum amount of nameplate generating capacity of all 31 wind energy conversion facilities the board may find eligible 32 under this chapter shall not exceed four hundred thirty-eight 33 megawatts of nameplate generating capacity. Of the maximum 34 amount of nameplate generating capacity for all wind energy 35 -1- LSB 1993XC (2) 85 rn/sc 1/ 4

S.F. _____ conversion facilities the board may find eligible under this 1 chapter, five megawatts of nameplate generating capacity shall 2 be reserved for wind energy conversion facilities located in 3 small wind innovation zones created under section 476.48. 4 b. The maximum amount of energy production capacity 5 equivalent of all other facilities the board may find eligible 6 under this chapter shall not exceed a combined output of 7 fifty-three megawatts of nameplate generating capacity and 8 one hundred sixty-seven billion British thermal units of 9 heat for a commercial purpose. Beginning January 1, 2015, 10 through December 31, 2019, this maximum shall be increased 11 each year by the energy production capacity equivalent of a 12 combined output of five megawatts, and the British thermal unit 13 equivalent, over the maximum in the previous year. Beginning 14 January 1, 2020, the maximum amount of energy production 15 capacity equivalent of all other facilities the board may find 16 eligible under this chapter shall not exceed seventy-eight 17 megawatts of nameplate generating capacity, and the British 18 thermal unit equivalent. Of the maximum amount of energy 19 production capacity equivalent of all other facilities found 20 eligible under this chapter , no more than ten megawatts of 21 nameplate generating capacity or energy production capacity 22 equivalent shall be allocated to any one facility. Of the 23 maximum amount of energy production capacity equivalent of all 24 other facilities found eligible under this chapter , fifty-five 25 billion British thermal units of heat for a commercial purpose 26 shall be reserved for an eligible facility that is a refuse 27 conversion facility for processed, engineered fuel from a 28 multicounty solid waste management planning area. The maximum 29 amount of energy production capacity the board may find 30 eligible for a single refuse conversion facility is fifty-five 31 billion British thermal units of heat for a commercial purpose. 32 Sec. 5. Section 476C.5, Code 2013, is amended to read as 33 follows: 34 476C.5 Certificate issuance period. 35 -2- LSB 1993XC (2) 85 rn/sc 2/ 4

S.F. _____ A producer or purchaser of renewable energy may receive 1 renewable energy tax credit certificates for a ten-year period 2 for each eligible renewable energy facility under this chapter . 3 The ten-year period for issuance of the tax credit certificates 4 begins with the date the purchaser of renewable energy first 5 purchases electricity, hydrogen fuel, methane gas , or other 6 biogas used to generate electricity , or heat for commercial 7 purposes from the eligible renewable energy facility for 8 which a tax credit is issued under this chapter , or the date 9 the producer of the renewable energy first uses the energy 10 produced by the eligible renewable energy facility for on-site 11 consumption. Renewable energy tax credit certificates shall 12 not be issued for renewable energy purchased or produced for 13 on-site consumption after December 31, 2024 2029 . 14 EXPLANATION 15 This bill modifies provisions relating to qualifying for and 16 receiving the wind energy and renewable energy tax credits. 17 Concerning the wind energy tax credit established in Code 18 chapter 476B, the bill extends by one year the date by which a 19 facility must be placed in service in order to be considered a 20 qualified facility. The date is extended from July 1, 2012, to 21 July 1, 2013. The bill provides that if additional nameplate 22 generating capacity becomes available within the 50 megawatt 23 maximum capacity restrictions for qualified facilities pursuant 24 to Code section 476B.5, subsection 4, the amount that has 25 become available, plus an additional amount necessary to render 26 a facility fully operational, if applicable, may be awarded 27 to the applicant who has awaited available capacity for the 28 longest period since receiving approval by the Iowa utilities 29 board. 30 Concerning the renewable energy tax credit established in 31 Code chapter 476C, the bill similarly extends the date by which 32 a facility must be placed in service in order to be considered 33 an eligible renewable energy facility from January 1, 2015, to 34 January 1, 2020. A conforming change is also made extending 35 -3- LSB 1993XC (2) 85 rn/sc 3/ 4

S.F. _____ the date after which a renewable energy tax credit certificate 1 shall not be issued from December 31, 2024, to December 31, 2 2029. 3 Additionally, with regard to the renewable energy tax 4 credit, currently the maximum amount of nameplate generating 5 capacity of all wind energy conversion facilities the board 6 may find eligible shall not exceed 363 megawatts. The bill 7 provides that beginning January 1, 2015, this maximum shall 8 be increased by 15 megawatts annually, with the last increase 9 occurring January 1, 2019. The bill specifies that of this 10 maximum capacity, five megawatts shall be reserved for wind 11 energy conversion facilities located in small wind innovation 12 zones created under Code section 476.48. Further, currently 13 the maximum amount of energy production capacity equivalent of 14 nonwind renewable energy facilities the board may find eligible 15 shall not exceed a combined output of 53 megawatts and 167 16 billion British thermal units of heat for a commercial purpose. 17 The bill provides that beginning January 1, 2015, this maximum 18 shall be increased by the energy production capacity equivalent 19 of a combined output of five megawatts and the British thermal 20 unit equivalent annually, with the last increase occurring 21 January 1, 2019. The bill specifies the resulting maximum 22 amounts of capacity applicable each year beginning January 1, 23 2020, for both wind energy conversion facilities and nonwind 24 renewable energy facilities. 25 -4- LSB 1993XC (2) 85 rn/sc 4/ 4