House
Study
Bill
182
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
VANDER
LINDEN)
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
2244YC
(1)
87
gh/sc/rn
H.F.
_____
Section
1.
Section
476C.1,
subsection
8,
Code
2017,
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
during
the
generation
of
electricity
using
methane
gas
10
or
other
biogas
produced
by
a
biogas
recovery
facility
when
11
such
heat
is
used
for
a
commercial
purpose
for
which
fuel
or
12
electricity
would
otherwise
be
consumed.
13
Sec.
2.
Section
476C.2,
subsection
1,
Code
2017,
is
amended
14
to
read
as
follows:
15
1.
A
producer
or
purchaser
of
renewable
energy
may
receive
16
renewable
energy
tax
credits
under
this
chapter
in
an
amount
17
equal
to
the
sum
of
the
following:
18
a.
one
One
and
one-half
cents
per
kilowatt-hour
of
19
electricity
,
or
.
20
b.
four
Four
dollars
and
fifty
cents
per
million
British
21
thermal
units
of
heat
for
a
commercial
purpose
,
or
.
22
c.
four
Four
dollars
and
fifty
cents
per
million
British
23
thermal
units
of
methane
gas
or
other
biogas
used
to
generate
24
electricity,
or
unless
renewable
energy
tax
credits
are
claimed
25
for
such
electricity
under
paragraph
“a”
.
26
d.
one
One
dollar
and
forty-four
cents
per
one
thousand
27
standard
cubic
feet
of
hydrogen
fuel
generated
by
and
purchased
28
from
an
eligible
renewable
energy
facility
or
used
for
on-site
29
consumption
by
the
producer.
30
Sec.
3.
Section
476C.3,
subsection
4,
paragraph
a,
Code
31
2017,
is
amended
to
read
as
follows:
32
a.
The
maximum
amount
of
nameplate
generating
capacity
33
of
all
wind
energy
conversion
facilities
the
board
may
find
34
eligible
under
this
chapter
shall
not
exceed
three
hundred
35
-1-
LSB
2244YC
(1)
87
gh/sc/rn
1/
3
H.F.
_____
sixty-three
forty-three
megawatts
of
nameplate
generating
1
capacity.
2
Sec.
4.
Section
476C.3,
subsection
4,
paragraph
b,
3
unnumbered
paragraph
1,
Code
2017,
is
amended
to
read
as
4
follows:
5
The
maximum
amount
of
energy
production
capacity
equivalent
6
of
all
other
facilities
the
board
may
find
eligible
under
this
7
chapter
shall
not
exceed
a
combined
output
of
sixty-three
8
eighty-three
megawatts
of
nameplate
generating
capacity
and,
9
annually,
one
hundred
sixty-seven
billion
British
thermal
units
10
of
heat
for
a
commercial
purpose.
11
Sec.
5.
Section
476C.3,
subsection
4,
paragraph
b,
Code
12
2017,
is
amended
by
adding
the
following
new
subparagraph:
13
NEW
SUBPARAGRAPH
.
(4)
Of
the
maximum
amount
of
energy
14
production
capacity
equivalent
of
all
other
facilities
15
found
eligible
under
this
chapter,
twenty-two
and
one-half
16
megawatts
of
nameplate
generating
capacity
or
energy
production
17
equivalent
shall
be
reserved
for
biogas
recovery
facilities
18
with
a
generating
capacity
of
two
and
one-half
megawatts
or
19
less.
20
Sec.
6.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
21
immediate
importance,
takes
effect
upon
enactment.
22
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
Act
applies
23
retroactively
to
January
1,
2014,
for
tax
years
beginning
on
24
or
after
that
date.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
modifies
provisions
applicable
to
the
renewable
29
energy
tax
credit
established
in
Code
chapter
476C.
30
Currently,
the
Code
chapter
defines
“heat
for
a
commercial
31
purpose”
to
mean
the
heat
in
British
thermal
unit
equivalents
32
from
refuse-derived
fuel,
methane,
or
other
biogas
produced
33
in
this
state
either
for
commercial
use
by
a
producer
for
34
on-site
consumption
or
sold
to
a
purchaser
of
renewable
35
-2-
LSB
2244YC
(1)
87
gh/sc/rn
2/
3
H.F.
_____
energy
for
use
for
a
commercial
purpose
in
Iowa
or
for
use
1
by
an
institution
in
Iowa.
The
bill
adds
that
“heat
for
a
2
commercial
purpose”
also
includes
heat
captured
during
the
3
generation
of
electricity
using
methane
gas
or
other
biogas
4
produced
by
a
biogas
recovery
facility
when
such
heat
is
used
5
for
a
commercial
purpose
for
which
fuel
or
electricity
would
6
otherwise
be
consumed.
7
Currently,
the
Code
chapter
specifies
the
dollar
value
8
of
renewable
energy
tax
credits
which
may
be
claimed
per
9
kilowatt-hour
of
electricity,
or
per
million
British
thermal
10
units
of
heat
for
a
commercial
purpose,
or
per
million
British
11
thermal
units
of
methane
gas
or
other
biogas
used
to
generate
12
electricity,
or
per
one
thousand
standard
cubic
feet
of
13
hydrogen
fuel.
The
bill
provides
that
a
producer
or
purchaser
14
of
renewable
energy
is
not
limited
to
claiming
one
form
of
15
these
four
differentiated
credits
but
may
instead
receive
more
16
than
one
credit
corresponding
to
each
type
of
heat
generated
or
17
captured
by
a
renewable
energy
facility.
18
Additionally,
current
Code
section
476.3(4)
specifies
the
19
maximum
amounts
of
energy
production
capacity
equivalent
of
20
renewable
energy
production
facilities
that
the
Iowa
utilities
21
board
may
find
eligible
for
a
renewable
energy
tax
credit.
22
The
bill
decreases
the
maximum
amount
of
nameplate
generating
23
capacity
(NGC)
with
respect
to
wind
energy
conversion
24
facilities
from
363
megawatts
to
343
megawatts.
The
bill
25
increases
the
maximum
amount
of
NGC
with
respect
to
all
26
other
facilities
from
63
megawatts
to
83
megawatts.
The
bill
27
provides
that
22.5
megawatts
out
of
the
total
83
megawatts
28
of
NGC
for
which
credits
may
be
issued
to
facilities
other
29
than
wind
energy
conversion
facilities
is
reserved
for
biogas
30
recovery
facilities
with
an
NGC
of
2.5
megawatts
or
less.
31
The
bill
takes
effect
upon
enactment
and
applies
32
retroactively
to
January
1,
2014,
for
tax
years
beginning
on
33
or
after
that
date.
34
-3-
LSB
2244YC
(1)
87
gh/sc/rn
3/
3