House File 645 - Introduced HOUSE FILE 645 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 212) 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 1971HV (2) 86 rn/sc

H.F. 645 Section 1. Section 476C.3, subsection 4, paragraph b, Code 1 2015, is amended to read as follows: 2 b. The maximum annual amount of energy production capacity 3 equivalent of all other facilities the board may find eligible 4 under this chapter shall not exceed a combined output of 5 fifty-three megawatts of nameplate generating capacity and one 6 hundred sixty-seven billion British thermal units of heat for 7 a commercial purpose. Of the maximum annual amount of energy 8 production capacity equivalent of all other facilities found 9 eligible under this chapter , no more than ten megawatts of 10 nameplate generating capacity or energy production capacity 11 equivalent shall be allocated annually to any one facility. 12 Of the maximum annual amount of energy production capacity 13 equivalent of all other facilities found eligible under this 14 chapter , fifty-five billion British thermal units of heat for a 15 commercial purpose shall be reserved annually for an eligible 16 facility that is a refuse conversion facility for processed, 17 engineered fuel from a multicounty solid waste management 18 planning area. The maximum amount of annual energy production 19 capacity the board may find eligible for a single refuse 20 conversion facility is fifty-five billion British thermal units 21 of heat for a commercial purpose. 22 Sec. 2. Section 476C.5, Code 2015, is amended to read as 23 follows: 24 476C.5 Certificate issuance period. 25 A producer or purchaser of renewable energy may shall 26 receive renewable energy tax credit certificates for a ten-year 27 period for each eligible renewable energy facility under this 28 chapter . The ten-year period for issuance of the tax credit 29 certificates begins with the date the purchaser of renewable 30 energy first purchases electricity, hydrogen fuel, methane 31 gas or other biogas used to generate electricity, or heat for 32 commercial purposes from the eligible renewable energy facility 33 for which a tax credit is issued under this chapter , or the 34 date the producer of the renewable energy first uses the energy 35 -1- LSB 1971HV (2) 86 rn/sc 1/ 2

H.F. 645 produced by the eligible renewable energy facility for on-site 1 consumption. Renewable energy tax credit certificates shall 2 not be issued for renewable energy purchased or produced for 3 on-site consumption after December 31, 2026. 4 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 5 immediate importance, takes effect upon enactment. 6 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 7 retroactively to January 1, 2014, for applications for a 8 renewable energy tax credit received by the board on or after 9 that date. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill modifies provisions applicable to the renewable 14 energy tax credit. 15 Currently, Code section 476C.3, subsection 4, specifies the 16 maximum amount of energy production capacity equivalent of all 17 renewable energy production facilities, other than wind energy 18 facilities, that the Iowa utilities board may find eligible 19 for a renewable energy tax credit. The bill modifies these 20 amounts, and allocations from these amounts, to refer to annual 21 amounts. 22 Additionally, current Code section 476C.5 provides that 23 the renewable energy tax credit may be received for a 10-year 24 period for an eligible renewable energy facility. The bill 25 deletes the word “may” and substitutes that the credit “shall” 26 be received for a 10-year period. 27 The bill takes effect upon enactment and is retroactively 28 applicable to January 1, 2014, for applications for a renewable 29 energy tax credit received by the Iowa utilities board on or 30 after that date. 31 -2- LSB 1971HV (2) 86 rn/sc 2/ 2