HSB 243 (LSB 1698YC (1) 86)

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 tax credit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 476C.1, subsection 6, paragraph e, Code 2015, is amended to read as follows:
   e.  (1)  For applications filed on or after July 1, 2011, is a facility of not less than three-fourths megawatts of nameplate generating capacity or the energy production capacity equivalent if all or a portion of the renewable energy produced is for on-site consumption by the producer.
   (2)  For applications filed on or after July 1, 2015, in addition to a facility qualifying pursuant to subparagraph (1), is a facility of not more than three-fourths megawatts of nameplate generating capacity or the energy production equivalent if all of the renewable energy produced is for on-site consumption by the producer.
    Sec. 2.  Section 476C.2, subsection 1, Code 2015, is amended to read as follows:
   1.  a.  A producer or purchaser of renewable energy may receive renewable energy tax credits under this chapter in an amount equal to one and one-half cents per kilowatt-hour of electricity, or four dollars and fifty cents per million British thermal units of heat for a commercial purpose, or four dollars and fifty cents per million British thermal units of methane gas or other biogas used to generate electricity, or one dollar and forty-four cents per one thousand standard cubic feet of hydrogen fuel generated by and purchased from an eligible renewable energy facility or used for on-site consumption by the producer.
   b.  Beginning January 1, 2016, a wind energy conversion facility with a nameplate generating capacity of one hundred kilowatts or less may receive renewable energy tax credits under this chapter in an amount equal to six cents per kilowatt-hour of electricity.
    Sec. 3.  Section 476C.3, subsection 4, Code 2015, is amended to read as follows:
   4.  a.  The maximum amount of nameplate generating capacity of all wind energy conversion facilities the board may find eligible under this chapter shall not exceed three hundred sixty-three megawatts of nameplate generating capacity.  Beginning January 1, 2016, of the credits relinquished pursuant to subsection 6, one megawatt of nameplate generating capacity shall be reserved for wind energy conversion facilities installed within a small wind innovation zone pursuant to section 476.48.
   b.  The maximum 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 two hundred sixty-seven seventy-two billion British thermal units of heat for a commercial purpose. Of the maximum 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 to any one facility. Of the maximum amount of energy production capacity equivalent of all other facilities found eligible under this chapter, fifty-five one hundred ten billion British thermal units of heat for a commercial purpose shall be reserved for an eligible facility refuse conversion facilities. Of this amount, fifty-five billion British thermal units of heat for a commercial purpose shall be reserved 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 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. 4.  Section 476C.3, subsection 6, Code 2015, is amended to read as follows:
   6.  a.  The board shall, until December 31, 2015, maintain a waiting list of facilities that may have been found eligible under this section but for the maximum capacity restrictions of subsection 4. The priority of the waiting list shall be maintained in the order the applications were received by the board. The board shall remove from the waiting list any facility that has subsequently been found ineligible under this chapter. If additional capacity becomes available within the capacity restrictions of subsection 4, the board shall grant approval to facilities according to the priority of the waiting list before granting approval to new applications. An owner of a facility on the waiting list shall provide the board each year by August 31 with a sworn statement of verification stating that the information contained in the application for eligibility remains true and correct or stating that the information has changed and providing the new information.
   b.  Beginning January 1, 2016, any facility awarded a tax credit prior to January 1, 2010, under this chapter that has not begun energy production or commenced substantial construction on a renewable energy facility shall relinquish the tax credit. A facility relinquishing a tax credit pursuant to this paragraph “b” shall be eligible to reapply to the board. Beginning January 1, 2016, facilities determined to be eligible shall be awarded the appropriate tax credit in the order the applications are received by the board on or after January 1, 2016.
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 renewable energy tax credits awarded pursuant to Code chapter 476C.
   Currently, to be eligible for a renewable energy tax credit, for applications filed on or after July 1, 2011, an applicant must be a facility of not less than three-fourths megawatts of nameplate generating capacity or the energy production capacity equivalent if all or a portion of the renewable energy produced is for on-site consumption by the producer. The bill provides that in addition to such facilities, for applications filed on or after July 1, 2015, an eligible facility may be a facility of not more than three-fourths megawatts of nameplate generating capacity or the energy production equivalent if all of the renewable energy produced is for on-site consumption by the producer.
   The bill provides that beginning January 1, 2016, a wind energy conversion facility with a nameplate generating capacity of 100 kilowatts or less may receive renewable energy tax credits in an amount equal to 6 cents per kilowatt-hour of electricity.
   Additionally, the Code chapter currently provides that the maximum amount of energy production capacity equivalent of eligible renewable energy facilities other than wind energy conversion facilities shall not exceed a combined output of 53 megawatts of nameplate generating capacity and 167 billion British thermal units of heat for a commercial purpose. The bill increases the British thermal unit limit to 272 billion British thermal units of heat for a commercial purpose, and provides that out of this amount 110 billion British thermal units of heat for a commercial purpose shall be reserved for refuse conversion facilities. Code chapter 476C currently reserves 55 billion British thermal units of heat for a commercial purpose for a refuse conversion facility for processed, engineered fuel from a multicounty solid waste management planning area.
   The bill also provides that a current waiting list of facilities which would be eligible for a renewable energy tax credit but for the Code chapter’s maximum capacity restrictions will be maintained until December 31, 2015. A new waiting list will commence on January 1, 2016, and beginning on that date the bill provides that any facility awarded a credit prior to January 1, 2010, that has not begun energy production or commenced substantial construction on a renewable energy facility shall relinquish the tax credit. The bill provides that such a facility shall be eligible to reapply to the board, and that facilities determined to be eligible for a tax credit beginning January 1, 2016, shall be awarded the appropriate tax credit in the order the applications are received by the board on or after that date. The bill further provides that beginning January 1, 2016, of the tax credits relinquished, one megawatt of nameplate generating capacity shall be reserved for wind energy conversion facilities installed within a small wind innovation zone.