House File 644 - Introduced HOUSE FILE 644 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 235) A BILL FOR An Act modifying provisions applicable to the renewable energy 1 tax credit, and including effective date and retroactive 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2198HV (2) 86 rn/sc

H.F. 644 Section 1. Section 476C.1, subsection 8, Code 2015, is 1 amended to read as follows: 2 8. “Heat for a commercial purpose” means the heat in British 3 thermal unit equivalents from refuse-derived fuel, methane, or 4 other biogas produced in this state either for commercial use 5 by a producer for on-site consumption or sold to a purchaser 6 of renewable energy for use for a commercial purpose in this 7 state or for use by an institution in this state. For purposes 8 of this chapter, “heat for a commercial purpose” includes heat 9 captured during the generation of electricity using methane gas 10 or other biogas produced by a biogas recovery facility when 11 such heat is used for a commercial purpose for which fuel or 12 electricity would otherwise be consumed. 13 Sec. 2. Section 476C.2, subsection 1, Code 2015, is amended 14 to read as follows: 15 1. A producer or purchaser of renewable energy may receive 16 renewable energy tax credits under this chapter in an amount 17 equal to the sum of the following: 18 a. one One and one-half cents per kilowatt-hour of 19 electricity , or . 20 b. four Four dollars and fifty cents per million British 21 thermal units of heat for a commercial purpose , or . 22 c. four Four dollars and fifty cents per million British 23 thermal units of methane gas or other biogas used to generate 24 electricity, or unless renewable energy tax credits are claimed 25 for such electricity under paragraph “a” . 26 d. one One dollar and forty-four cents per one thousand 27 standard cubic feet of hydrogen fuel generated by and purchased 28 from an eligible renewable energy facility or used for on-site 29 consumption by the producer. 30 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 31 immediate importance, takes effect upon enactment. 32 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 33 retroactively to January 1, 2014, for tax years beginning on 34 or after that date. 35 -1- LSB 2198HV (2) 86 rn/sc 1/ 2

H.F. 644 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill modifies provisions applicable to the renewable 4 energy tax credit established in Code chapter 476C. 5 Currently, the Code chapter defines “heat for a commercial 6 purpose” to mean the heat in British thermal unit equivalents 7 from refuse-derived fuel, methane, or other biogas produced 8 in this state either for commercial use by a producer for 9 on-site consumption or sold to a purchaser of renewable 10 energy for use for a commercial purpose in Iowa or for use 11 by an institution in Iowa. The bill adds that “heat for a 12 commercial purpose” also includes heat captured during the 13 generation of electricity using methane gas or other biogas 14 produced by a biogas recovery facility when such heat is used 15 for a commercial purpose for which fuel or electricity would 16 otherwise be consumed. 17 Additionally, currently the Code chapter specifies the 18 dollar value of renewable energy tax credits which may be 19 claimed per kilowatt-hour of electricity, or per million 20 British thermal units of heat for a commercial purpose, or per 21 million British thermal units of methane gas or other biogas 22 used to generate electricity, or per one thousand standard 23 cubic feet of hydrogen fuel. The bill provides that a producer 24 or purchaser of renewable energy is not limited to claiming 25 one form of these four differentiated credits but may instead 26 receive more than one credit corresponding to each type of heat 27 generated or captured by a renewable energy facility. 28 The bill takes effect upon enactment and applies 29 retroactively to January 1, 2014, for tax years beginning on 30 or after that date. 31 -2- LSB 2198HV (2) 86 rn/sc 2/ 2