H.F. 669 Section 1. Section 15.120, subsection 1, Code 2021, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . h. To provide outreach and education to 3 utility ratepayers regarding energy efficiency and renewable 4 energy technology options and financing opportunities for 5 efficiently managing and reducing energy consumption, including 6 distributed energy storage technology. 7 Sec. 2. Section 422.11L, subsection 3, paragraph c, Code 8 2021, is amended to read as follows: 9 c. A taxpayer may claim more than one credit under this 10 section , but may claim only one credit per separate and 11 distinct solar installation or device used to store energy 12 generated by a solar installation . The department shall 13 establish criteria, by rule, for determining what constitutes a 14 separate and distinct installation. 15 Sec. 3. Section 422.11L, subsection 3, paragraph d, 16 subparagraph (1), Code 2021, is amended to read as follows: 17 (1) A taxpayer must submit an application to the department 18 for each separate and distinct solar installation and device 19 used to store energy generated by a solar installation . The 20 application must be approved by the department in order to 21 claim the tax credit. The application must be filed by May 22 1 following the year of the installation of the solar energy 23 system. 24 Sec. 4. Section 422.11L, subsection 4, paragraph a, Code 25 2021, is amended to read as follows: 26 a. The cumulative value of tax credits claimed annually by 27 applicants pursuant to this section shall not exceed five seven 28 million dollars. Of this amount, at least one million dollars 29 shall be reserved for claims associated with or resulting from 30 residential solar energy system installations. In the event 31 that the total amount of claims submitted for residential solar 32 energy system installations in a tax year is an amount less 33 than one million dollars, the remaining unclaimed reserved 34 amount shall be made available for claims associated with or 35 -1- LSB 1227YH (2) 89 ja/rn 1/ 7

H.F. 669 resulting from nonresidential solar energy system installations 1 or devices used to store energy generated by nonresidential 2 solar energy system installations received for the tax year. 3 Sec. 5. Section 475A.2, Code 2021, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 7. Develop, format, and make available 6 for public use a standard energy cost disclosure statement for 7 utilization by landlords of residential property to communicate 8 to prospective tenants the historical gas, electric, water, 9 and sewer utility service costs for a dwelling unit. The 10 disclosure statement shall include the total annual or average 11 monthly utility service costs, and shall also include a 12 checklist to indicate the efficiency and other energy features 13 of a dwelling unit and the building of which it is a part. 14 Sec. 6. Section 476.6, Code 2021, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 22. Solar energy storage capacity. A 17 rate-regulated electric utility may provide for solar 18 energy storage capacity paired with solar energy facility 19 installations in the state. Solar energy storage capacity 20 based on electrical output may be credited to the electric 21 utility’s solar energy ownership or purchase requirements as 22 provided in section 476.44, subsection 2. For purposes of this 23 subsection, the economic development authority shall define by 24 rule adopted pursuant to chapter 17A the meaning of the term 25 “storage” , consistent with the Iowa energy plan adopted by the 26 authority in December 2016. 27 Sec. 7. Section 476.44, subsection 2, Code 2021, is amended 28 to read as follows: 29 2. a. (1) An electric utility subject to this subchapter , 30 except a utility that elects rate regulation pursuant to 31 section 476.1A , shall not be required to own or purchase, at 32 any one time, more than from solar energy facilities located in 33 this state, its share of one hundred five megawatts of power 34 from alternate energy production facilities or small hydro 35 -2- LSB 1227YH (2) 89 ja/rn 2/ 7

H.F. 669 facilities by January 1, 2023, and two thousand five hundred 1 megawatts of power by January 1, 2027, at the rates established 2 pursuant to section 476.43 . The board shall allocate the one 3 hundred five megawatts solar energy ownership or purchase 4 requirements based upon each utility’s percentage of the total 5 Iowa retail peak demand, for the year beginning January 1, 6 1990 2021 , of all utilities subject to this section . If a 7 utility undergoes reorganization as defined in section 476.76 , 8 the board shall combine the allocated purchases of power solar 9 energy for each utility involved in the reorganization. 10 (2) In satisfying the solar energy ownership or purchase 11 requirements pursuant to subparagraph (1), a minimum of ten 12 percent of the energy produced or purchased shall be produced 13 or purchased from solar energy facilities with a nameplate 14 generating capacity of twenty kilowatts or less. 15 b. Notwithstanding the one hundred five megawatt maximum 16 solar energy ownership or purchase requirements established 17 in paragraph “a” , the board may increase the amount of power 18 solar energy that a utility is required to own or purchase at 19 the rates established pursuant to section 476.43 if the board 20 finds that a utility, including a reorganized utility, exceeds 21 its 1990 2021 Iowa retail peak demand by twenty percent and 22 the additional power solar energy the utility is required to 23 purchase will encourage the development of alternate energy 24 production facilities and small hydro solar energy facilities. 25 The increase shall not exceed the utility’s increase in peak 26 demand multiplied by the ratio of the utility’s share of the 27 one hundred five megawatt maximum solar energy ownership or 28 purchase requirements to its 1990 2021 Iowa retail peak demand. 29 Sec. 8. NEW SECTION . 476.61 Virtual net metering. 30 1. For purposes of this section, unless the context 31 otherwise requires: 32 a. “Solar garden” means a solar panel installation that 33 provides electricity to multiple electric utility customers and 34 to which any of the following apply: 35 -3- LSB 1227YH (2) 89 ja/rn 3/ 7

H.F. 669 (1) An electric utility customer may purchase solar panels 1 within the installation. 2 (2) An electric utility customer may lease solar panels 3 within the installation. 4 b. “Virtual net metering” means a bill crediting system 5 that allows an electric utility customer to receive credits on 6 their electric bill for energy produced by the electric utility 7 customer’s share of a solar garden. 8 2. The board shall adopt rules pursuant to chapter 17A 9 establishing processes and procedures allowing electric utility 10 customers to participate in, and receive credits on their 11 electric bills for, virtual net metering. 12 Sec. 9. NEW SECTION . 476.64 Master metering. 13 1. For purposes of this section, unless the context 14 otherwise requires: 15 a. “Master metering” means a method of measuring the total 16 usage of public utilities by multiple persons in a multifamily 17 residence that utilizes a device that measures and registers 18 the integral of quantities of public utilities with respect to 19 time. 20 b. “Owner” means one or more persons, jointly or severally, 21 in whom is vested: 22 (1) All or part of the legal title to a multifamily 23 residence. 24 (2) All or part of the beneficial ownership and right to 25 present use and enjoyment of a multifamily residence. 26 2. The board shall adopt rules pursuant to chapter 17A 27 establishing processes and procedures, including an application 28 process, allowing an owner who is a public utility customer to 29 participate in master metering. 30 3. The board shall not approve an owner’s application to 31 participate in master metering unless the application indicates 32 the owner’s ability and intent to provide renewable energy 33 generation, energy efficiency technology, or infrastructure 34 improvements to a multifamily residence that is the subject of 35 -4- LSB 1227YH (2) 89 ja/rn 4/ 7

H.F. 669 the application. 1 4. An owner who successfully applies for master metering 2 shall not do any of the following: 3 a. Charge a tenant of the multifamily residence for the 4 tenant’s public utility usage. 5 b. Enter into a lease agreement with a tenant that is 6 structured to account for the variance in energy usage by the 7 tenants of the multifamily residence. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to public utilities, including duties 12 of the Iowa energy center with regard to energy efficiency 13 outreach, solar energy system tax credits, duties of the office 14 of the consumer advocate with regard to disclosure of certain 15 energy costs, solar energy storage capacity and ownership or 16 purchase requirements applicable to certain electric utilities, 17 and new metering methods. 18 The bill requires the Iowa energy center to provide 19 outreach and education to utility ratepayers regarding energy 20 efficiency, renewable energy technology options, and financing 21 opportunities for efficiently managing energy consumption. 22 Current law limits to $5 million annually the amount of solar 23 energy tax credits a person may claim. The bill increases this 24 annual amount to $7 million. The bill also allows a person to 25 claim solar energy tax credits in conjunction with devices used 26 to store energy generated by a solar installation. 27 The bill requires the office of the consumer advocate to 28 develop and make available for public use a standard energy 29 cost disclosure statement for utilization by landlords of 30 residential property to communicate to prospective tenants the 31 historical utility service costs for a dwelling unit. The 32 disclosure statement shall include the total annual or average 33 monthly utility service costs and other energy features of a 34 dwelling unit and the building of which it is a part. 35 -5- LSB 1227YH (2) 89 ja/rn 5/ 7

H.F. 669 The bill allows a rate-regulated electric utility to provide 1 for solar energy storage capacity paired with solar energy 2 facility installations in Iowa. Storage capacity based on 3 electrical output may be credited to the utility’s solar energy 4 ownership or purchase requirements as provided in the bill. 5 The Iowa economic development authority shall define by rule 6 the meaning of the term “storage”, consistent with the Iowa 7 energy plan adopted by the authority. 8 Current law requires electric utilities to own alternate 9 energy production facilities or small hydro facilities located 10 in Iowa, or to enter into long-term contracts to purchase 11 electricity from such facilities. An electric utility is not 12 required to own or purchase, at any one time, more than its 13 share of 105 megawatts of power from such facilities. 14 The bill modifies the alternate energy ownership or purchase 15 requirement to make it applicable strictly to solar energy 16 derived from solar energy facilities located in Iowa, and 17 requires an electric utility to own or purchase its share of 18 105 megawatts of power by January 1, 2023, and 2,500 megawatts 19 of power by January 1, 2027. Of these amounts, a minimum of 20 10 percent of the energy produced or purchased shall be from 21 solar energy facilities with a nameplate generating capacity 22 of 20 kilowatts or less. The bill makes conforming changes to 23 related provisions. 24 The bill directs the Iowa utilities board to adopt rules 25 allowing for virtual net metering. The bill defines “virtual 26 net metering” as a bill crediting system that allows an 27 electric utility customer to receive credits on their electric 28 bill for energy produced by the electric utility customer’s 29 share of a solar garden. The bill defines “solar garden” as a 30 solar panel installation that provides electricity to multiple 31 electric utility customers and in which an electric utility 32 customer may either purchase or lease solar panels. 33 The bill also directs the board to adopt rules allowing 34 for master metering for owners of a multifamily residence. 35 -6- LSB 1227YH (2) 89 ja/rn 6/ 7

H.F. 669 The bill defines “master metering” as a method of measuring 1 the total usage of public utilities by multiple persons in a 2 multifamily residence that utilizes a device that measures 3 and registers the integral of quantities of public utilities 4 with respect to time. The bill defines “owner” as a person or 5 persons in whom legal title or beneficial ownership and right 6 to present use of a multifamily residence is vested. 7 The bill provides the board shall not approve an owner’s 8 application for master metering unless the application 9 indicates the owner’s ability and intent to provide renewable 10 energy generation, energy efficiency technology, or 11 infrastructure improvements to the multifamily residence. The 12 bill prohibits an owner who successfully applies for master 13 metering from charging tenants of the multifamily residence 14 for their individual public utility usage, or entering into 15 leases with tenants which leases are structured to account for 16 variance in energy usage by the tenants of the multifamily 17 residence. 18 -7- LSB 1227YH (2) 89 ja/rn 7/ 7