HF 645 (LSB 1971HV (2) 86)

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 tax credit, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476C.3, subsection 4, paragraph b, Code 2015, is amended to read as follows:
   b.  The maximum annual amount of energy production capacity equivalent of all other facilities the board may find eligible under this chapter shall not exceed a combined output of fifty-three megawatts of nameplate generating capacity and one hundred sixty-seven billion British thermal units of heat for a commercial purpose. Of the maximum annual amount of energy production capacity equivalent of all other facilities found eligible under this chapter, no more than ten megawatts of nameplate generating capacity or energy production capacity equivalent shall be allocated annually to any one facility. Of the maximum annual amount of energy production capacity equivalent of all other facilities found eligible under this chapter, fifty-five billion British thermal units of heat for a commercial purpose shall be reserved annually for an eligible facility that is a refuse conversion facility for processed, engineered fuel from a multicounty solid waste management planning area. The maximum amount of annual energy production capacity the board may find eligible for a single refuse conversion facility is fifty-five billion British thermal units of heat for a commercial purpose. 
    Sec. 2.  Section 476C.5, Code 2015, is amended to read as follows:
   476C.5  Certificate issuance period.

   A producer or purchaser of renewable energy may shall 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, 2026.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2014, for applications for a renewable energy tax credit received by the board on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill modifies provisions applicable to the renewable energy tax credit.
   Currently, Code section 476C.3, subsection 4, specifies the maximum amount of energy production capacity equivalent of all renewable energy production facilities, other than wind energy facilities, that the Iowa utilities board may find eligible for a renewable energy tax credit. The bill modifies these amounts, and allocations from these amounts, to refer to annual amounts.
   Additionally, current Code section 476C.5 provides that the renewable energy tax credit may be received for a 10-year period for an eligible renewable energy facility. The bill deletes the word “may” and substitutes that the credit “shall” be received for a 10-year period.
   The bill takes effect upon enactment and is retroactively applicable to January 1, 2014, for applications for a renewable energy tax credit received by the Iowa utilities board on or after that date.