House Study Bill 235 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) 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 2198YC (3) 86 rn/sc

H.F. _____ 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 by a biogas recovery facility from the use of methane 10 gas or other biogas to generate electricity if such heat is 11 used as described in this subsection. 12 Sec. 2. Section 476C.2, subsection 1, Code 2015, is amended 13 to read as follows: 14 1. a. A producer or purchaser of renewable energy may 15 receive renewable energy tax credits under this chapter in 16 an amount equal to one and one-half cents per kilowatt-hour 17 of electricity, or four dollars and fifty cents per million 18 British thermal units of heat for a commercial purpose, or 19 four dollars and fifty cents per million British thermal units 20 of methane gas or other biogas used to generate electricity, 21 or one dollar and forty-four cents per one thousand standard 22 cubic feet of hydrogen fuel generated by and purchased from 23 an eligible renewable energy facility or used for on-site 24 consumption by the producer. 25 b. A producer or purchaser of renewable energy may cumulate 26 renewable energy tax credit amounts as provided in paragraph 27 “a” for renewable energy produced by an eligible facility and 28 for renewable energy captured as a byproduct of such renewable 29 energy production. 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, 2015, for tax years beginning on 34 or after that date. 35 -1- LSB 2198YC (3) 86 rn/sc 1/ 2

H.F. _____ 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 in 8 this state either for commercial use by a producer for on-site 9 consumption or sold to a purchaser of renewable energy for use 10 for a commercial purpose in Iowa or for use by an institution 11 in Iowa. The bill provides that this definition also includes 12 heat captured by a biogas recovery facility from the use of 13 methane gas or other biogas to generate electricity. 14 Additionally, currently the Code chapter specifies the 15 dollar value of renewable energy tax credits which may be 16 claimed per kilowatt-hour of electricity, or per million 17 British thermal units of heat for a commercial purpose, or per 18 million British thermal units of methane gas or other biogas 19 used to generate electricity, or per one thousand standard 20 cubic feet of hydrogen fuel. The bill provides that a producer 21 or purchaser of renewable energy may cumulate renewable energy 22 tax credit amounts for renewable energy produced by an eligible 23 facility and renewable energy that is captured as a byproduct 24 of such renewable energy production. 25 The bill takes effect upon enactment and applies 26 retroactively to January 1, 2015, for tax years beginning on 27 or after that date. 28 -2- LSB 2198YC (3) 86 rn/sc 2/ 2