Senate Study Bill 1211 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON NATURAL RESOURCES AND ENVIRONMENT BILL BY CHAIRPERSON DEARDEN) A BILL FOR An Act relating to alternate energy by extending renewable 1 energy tax credit eligibility dates, expanding membership of 2 the Iowa energy center advisory council, and establishing 3 specified grant and loan funds. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2167XC (2) 85 rn/sc

S.F. _____ Section 1. Section 266.39C, subsection 2, paragraph a, Code 1 2013, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (13) Two representatives of the wind 3 energy manufacturing, service, and production industries, one 4 representing a large-scale wind energy producer, appointed 5 by the Iowa wind energy association, and one representing a 6 small-scale wind energy producer, appointed by the Iowa wind 7 energy association. 8 Sec. 2. NEW SECTION . 473.21 Small wind innovation zone 9 assistance fund. 10 1. A small wind innovation zone assistance fund is created 11 in the state treasury under the control of the Iowa energy 12 center established in section 266.39C. All moneys deposited or 13 paid into the fund are appropriated and made available to the 14 Iowa energy center to be used for small wind innovation zone 15 grants or loans as provided in subsection 2. The fund shall 16 consist of any moneys appropriated by the general assembly 17 and payments on loans made under this section. Moneys in the 18 fund are not subject to section 8.22. Notwithstanding section 19 12C.7, subsection 2, interest or earnings on moneys deposited 20 in the fund shall be credited to the fund. 21 2. Moneys in the small wind innovation zone assistance fund 22 shall be used to provide grants and loans for the construction 23 of small wind energy systems as defined in section 476.48 for 24 the applicant’s own use of electricity within a small wind 25 innovation zone designated pursuant to section 476.48. 26 3. A minimum of fifty percent of the moneys in the fund 27 shall be distributed or awarded each year to applicants in the 28 form of loans. 29 4. Eligibility criteria and loan qualifications and terms 30 shall be determined by the authority by rule in coordination 31 with the Iowa energy center advisory board. 32 Sec. 3. NEW SECTION . 473.22 Homegrown wind energy and solar 33 energy assistance fund. 34 1. A homegrown wind energy and solar energy assistance 35 -1- LSB 2167XC (2) 85 rn/sc 1/ 6

S.F. _____ fund is created in the state treasury under the control of the 1 Iowa energy center established in section 266.39C. All moneys 2 deposited or paid into the fund are appropriated and made 3 available to the Iowa energy center to be used for wind energy 4 or solar energy grants or loans as provided in subsection 5 2. The fund shall consist of any moneys appropriated by 6 the general assembly and payments on loans made under this 7 section. Moneys in the fund are not subject to section 8.22. 8 Notwithstanding section 12C.7, subsection 2, interest or 9 earnings on moneys deposited in the fund shall be credited to 10 the fund. 11 2. Moneys in the homegrown wind energy and solar energy 12 assistance fund shall be used to provide grants or loans 13 for the construction of wind energy systems or solar energy 14 systems by a private college or university, community college, 15 institution under the control of the state board of regents, 16 public or accredited nonpublic elementary or secondary school, 17 or public hospital as defined in section 249J.3 for the 18 applicant’s own use of electricity. Eligible projects shall 19 not exceed one-half megawatt of nameplate generating capacity. 20 3. A minimum of seventy-five percent of moneys in the 21 fund shall be utilized each year for wind energy projects. A 22 minimum of fifty percent of the moneys in the fund shall be 23 distributed or awarded each year to applicants in the form of 24 loans. 25 4. Eligibility criteria and loan qualifications and terms 26 shall be determined by the authority by rule in coordination 27 with the Iowa energy center advisory board. 28 Sec. 4. NEW SECTION . 473.23 Powering agriculture wind and 29 solar energy assistance fund. 30 1. A powering agriculture wind and solar energy assistance 31 fund is created in the state treasury under the control of 32 the Iowa energy center established in section 266.39C. All 33 moneys deposited or paid into the fund are appropriated 34 and made available to the Iowa energy center to be used for 35 -2- LSB 2167XC (2) 85 rn/sc 2/ 6

S.F. _____ agricultural wind energy or solar energy grants or loans as 1 provided in subsection 2. The fund shall consist of any moneys 2 appropriated by the general assembly and payments on loans 3 made under this section. Moneys in the fund are not subject 4 to section 8.22. Notwithstanding section 12C.7, subsection 2, 5 interest or earnings on moneys deposited in the fund shall be 6 credited to the fund. 7 2. Moneys in the powering agriculture wind energy and solar 8 energy assistance fund shall be used to provide grants or loans 9 for the construction of wind energy systems or solar energy 10 systems at farms located in the state for the applicant’s 11 own use of electricity. Eligible projects shall not exceed 12 one-half megawatt of nameplate generating capacity. 13 3. A minimum of seventy-five percent of moneys in the 14 fund shall be utilized each year for wind energy projects. A 15 minimum of fifty percent of the moneys in the fund shall be 16 distributed or awarded each year to applicants in the form of 17 loans. 18 4. Eligibility criteria and loan qualifications and terms 19 shall be determined by the authority by rule in coordination 20 with the Iowa energy center advisory board. 21 Sec. 5. Section 476C.1, subsection 6, paragraph d, Code 22 2013, is amended to read as follows: 23 d. Was initially placed into service on or after July 1, 24 2005, and before January 1, 2015 2018 . 25 Sec. 6. Section 476C.5, Code 2013, is amended to read as 26 follows: 27 476C.5 Certificate issuance period. 28 A producer or purchaser of renewable energy may receive 29 renewable energy tax credit certificates for a ten-year period 30 for each eligible renewable energy facility under this chapter . 31 The ten-year period for issuance of the tax credit certificates 32 begins with the date the purchaser of renewable energy first 33 purchases electricity, hydrogen fuel, methane gas or other 34 biogas used to generate electricity, or heat for commercial 35 -3- LSB 2167XC (2) 85 rn/sc 3/ 6

S.F. _____ purposes from the eligible renewable energy facility for 1 which a tax credit is issued under this chapter , or the date 2 the producer of the renewable energy first uses the energy 3 produced by the eligible renewable energy facility for on-site 4 consumption. Renewable energy tax credit certificates shall 5 not be issued for renewable energy purchased or produced for 6 on-site consumption after December 31, 2024 2027 . 7 EXPLANATION 8 This bill relates to alternate energy by extending renewable 9 energy tax credit eligibility dates, expanding membership of 10 the Iowa energy center advisory council, and establishing 11 specified grant and loan funds. 12 The bill adds two new members to the council who shall be 13 representatives of the wind energy manufacturing, service, and 14 production industries. The bill provides that one member shall 15 represent a large-scale wind energy producer, and one member 16 shall represent a small-scale wind energy producer. Both 17 members shall be appointed by the Iowa wind energy association. 18 The bill establishes three new grant and loan funds, one 19 relating exclusively to wind energy projects, and the other 20 two encompassing solar energy projects in addition to wind. 21 Each grant and loan fund is structured similarly. The funds 22 are created in the state treasury under the control of the 23 Iowa energy center established in Code section 266.39C and 24 all moneys deposited or paid into the funds are appropriated 25 and made available to the Iowa energy center to be used for 26 their specified purposes. Each fund shall consist of moneys 27 appropriated by the general assembly, if such an appropriation 28 is made, and loan repayments. The bill specifies that moneys 29 in the funds are not subject to reversion to the general fund, 30 and interest or earnings on moneys deposited in the funds 31 shall be credited to the funds. Further, the bill states that 32 eligibility criteria and loan qualifications and terms shall be 33 determined by the authority by rule in coordination with the 34 Iowa energy center advisory board. 35 -4- LSB 2167XC (2) 85 rn/sc 4/ 6

S.F. _____ The bill creates a small wind innovation zone assistance 1 fund and provides that moneys in the fund shall be used 2 to provide grants and loans for the construction of small 3 wind energy systems as defined in Code section 476.48 for 4 the applicant’s own use of electricity within a designated 5 small wind innovation zone, with a minimum of 50 percent of 6 the moneys in the fund annually distributed or awarded to 7 applicants in the form of loans. 8 The bill creates a homegrown wind energy and solar energy 9 assistance fund and provides that moneys in the fund shall 10 be used to provide grants or loans for the construction of 11 wind energy systems or solar energy systems by a private 12 college or university, community college, institution under the 13 control of the state board of regents, public or accredited 14 nonpublic elementary or secondary school, or public hospital as 15 defined in Code section 249J.3 for the applicant’s own use of 16 electricity. The bill specifies that eligible projects shall 17 not exceed one-half megawatt of nameplate generating capacity, 18 that a minimum of 75 percent of moneys in the fund shall be 19 utilized annually for wind energy projects, and that a minimum 20 of 50 percent of the moneys in the fund shall be distributed or 21 awarded to applicants annually in the form of loans. 22 The bill creates a powering agriculture wind energy and 23 solar energy assistance fund and provides that moneys in 24 the fund shall be used to provide grants or loans for the 25 construction of wind energy systems or solar energy systems 26 at farms located in the state for the applicant’s own use of 27 electricity. The bill states that eligible projects shall not 28 exceed one-half megawatt of nameplate generating capacity, that 29 a minimum of 75 percent of moneys in the fund shall be utilized 30 for wind energy projects, and that a minimum of 50 percent 31 of the moneys in the fund shall be distributed or awarded to 32 applicants annually in the form of loans. 33 Additionally, the bill extends by three years the time 34 period during which an eligible renewable energy facility 35 -5- LSB 2167XC (2) 85 rn/sc 5/ 6