Senate File 242 - Introduced SENATE FILE 242 BY BOLKCOM A BILL FOR An Act relating to solar energy purchase requirements 1 applicable to certain electric utilities. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1981XS (1) 86 rn/nh

S.F. 242 Section 1. Section 476.44, subsection 2, Code 2015, is 1 amended to read as follows: 2 2. a. (1) An electric utility subject to this subchapter , 3 except a utility that elects rate regulation pursuant to 4 section 476.1A , shall not be required , by January 1, 2020, 5 to own or purchase , at any one time, more than its share of 6 one hundred five megawatts of power from alternative energy 7 production facilities or small hydro solar energy facilities 8 located in this state at the rates established pursuant to 9 section 476.43 . The board shall allocate the one hundred five 10 megawatts based upon each utility’s percentage of the total 11 Iowa retail peak demand, for the year beginning January 1, 1990 12 2015 , of all utilities subject to this section . If a utility 13 undergoes reorganization as defined in section 476.76 , the 14 board shall combine the allocated purchases of power for each 15 utility involved in the reorganization. 16 (2) In satisfying the solar energy ownership or purchase 17 requirements pursuant to subparagraph (1), a minimum of ten 18 percent of the energy produced or purchased shall be produced 19 by or purchased from solar energy facilities with a nameplate 20 generating capacity of twenty kilowatts or less. 21 b. Notwithstanding the one hundred five megawatt maximum 22 requirement , the board may increase the amount of power solar 23 energy that a utility is required to own or purchase at the 24 rates established pursuant to section 476.43 if the board 25 finds that a utility, including a reorganized utility, exceeds 26 its 1990 2015 Iowa retail peak demand by twenty percent and 27 the additional power solar energy the utility is required to 28 purchase will encourage the development of alternate energy 29 production facilities and small hydro solar energy facilities. 30 The increase shall not exceed the utility’s increase in peak 31 demand multiplied by the ratio of the utility’s share of the 32 one hundred five megawatt maximum requirement to its 1990 2015 33 Iowa retail peak demand. 34 EXPLANATION 35 -1- LSB 1981XS (1) 86 rn/nh 1/ 2

S.F. 242 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill specifies solar energy purchase requirements 3 applicable to electric public utilities. 4 Currently, electric utilities are required to own alternate 5 energy production facilities or small hydro facilities located 6 in Iowa, or to enter into long-term contracts to purchase or 7 wheel electricity from such facilities. Alternate energy 8 production facilities are defined in Code section 476.42 9 to include solar, wind turbine, waste management, resource 10 recovery, refuse-derived fuel, agricultural crops or residues, 11 or woodburning facilities. 12 There is a limitation on the amount of electricity required 13 to be produced by a facility which is owned by an electric 14 utility, or purchased or wheeled from an alternate energy 15 production facility or small hydro facility. An electric 16 utility is not required to own or purchase, at any one time, 17 more than its share of 105 megawatts of power from alternate 18 energy production facilities or small hydro facilities. 19 The bill modifies the 105 megawatt purchase requirement 20 and limitation to make it applicable strictly to solar energy 21 derived from solar energy facilities in this state. The 105 22 megawatt solar energy ownership or purchase requirements must 23 be attained by January 1, 2020. The bill provides that out of 24 this amount, a minimum of 10 percent of the energy produced 25 or purchased shall be produced by or purchased from solar 26 energy facilities with a nameplate generating capacity of 27 20 kilowatts or less. The bill makes conforming changes to 28 related provisions. 29 -2- LSB 1981XS (1) 86 rn/nh 2/ 2