S.F. 332 Section 1. Section 476.1, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6. A shared solar net metering cooperative 3 established pursuant to section 476.50 shall not be regarded as 4 a public utility for purposes of this chapter. 5 Sec. 2. Section 476.25, Code 2023, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 4. The furnishing of electricity pursuant 8 to a shared solar net metering cooperative under section 476.50 9 shall not be considered an unnecessary duplication of electric 10 utility facilities and shall not constitute a violation of this 11 section. 12 Sec. 3. NEW SECTION . 476.50 Shared solar net metering 13 cooperatives —— established. 14 1. As used in this section, unless the context otherwise 15 requires: 16 a. “Electric utility” means a public utility that furnishes 17 electricity to the public for compensation that is required to 18 be rate-regulated under this chapter. 19 b. “Eligible distributed generation facility” means a 20 distributed generation facility that elects a billing method 21 pursuant to section 476.49, and to which all of the following 22 apply: 23 (1) The facility is located behind a customer’s electricity 24 meters. 25 (2) The facility is interconnected to the electric utility 26 distribution system. 27 (3) The facility has an aggregate nameplate capacity less 28 than or equal to one megawatt alternating current. 29 (4) The facility has a capability to produce no more than 30 one hundred ten percent of the net metering cooperative’s 31 annual electricity usage. 32 (5) The facility’s generating capacity and associated 33 energy is intended to serve only the electric requirements of 34 the net metering cooperative. 35 -1- LSB 2086XS (2) 90 es/rn 1/ 5

S.F. 332 c. “Shared solar net metering cooperative” or “cooperative” 1 means a distributed generation facility that generates 2 electricity by means of a ground-mounted or roof-mounted 3 solar photovoltaic device whereby subscribers receive a bill 4 credit for the electricity generated in proportion to the size 5 of the customer’s subscription. Shared solar net metering 6 cooperatives are alternative energy production facilities that 7 produce solar energy. 8 d. “Subscriber” means a customer of an electric utility 9 subject to this section who owns one or more subscriptions to a 10 shared solar net metering cooperative interconnected with that 11 utility. 12 e. “Subscription” means a proportional contractual interest 13 in a shared solar net metering cooperative, together with a 14 proportional interest in any state or federal tax credits for 15 which a shared solar net metering cooperative may be eligible. 16 2. A shared solar net metering cooperative program is 17 established to encourage and enhance the generation of solar 18 energy and to encourage and enhance the ability of electric 19 utility customers to participate in and derive benefit from 20 alternate solar energy projects. 21 a. Customers in the state may enter into a shared solar 22 net metering cooperative with an electric utility whereby 23 subscribers own the solar production at a location other than 24 the location where the customer has an electricity meter. 25 b. Customers become cooperative members by purchasing 26 subscription access to a shared solar net metering cooperative. 27 Subscribers to a shared solar net metering cooperative shall 28 receive a credit for the kilowatt-hours generated in proportion 29 to the size of the customer’s subscription. 30 c. An electric utility shall be required to purchase 31 from a shared solar net metering cooperative in accordance 32 with section 476.49. A subscriber’s portion of the 33 electricity purchased by the utility shall be credited to the 34 subscriber’s account with the utility. The board shall develop 35 -2- LSB 2086XS (2) 90 es/rn 2/ 5

S.F. 332 interconnection agreements for utilization by a shared solar 1 net metering cooperative interconnecting with a utility. 2 d. A shared solar net metering cooperative shall be subject 3 to the following: 4 (1) Utilize facilities generating electricity by means of 5 ground-mounted or roof-mounted solar photovoltaic devices. 6 (2) Provide subscription access to the cooperative 7 exclusively to customers of a single energy utility electric 8 utility. 9 (3) Deny access to state customers located farther than 10 thirty miles from the cooperative or customers located outside 11 of the state. 12 e. A subscriber may include all of their electricity meters 13 in the cooperative. 14 f. A shared solar net metering cooperative shall be limited 15 to ten subscribers per cooperative with some or all of the 16 subscribers having alternative energy production facilities 17 that produce solar energy. Each subscriber shall be a customer 18 of the same utility and shall have at least one electricity 19 meter. 20 g. Shared solar net metering cooperatives may be owned by 21 investors. 22 3. The board shall adopt rules to implement the provisions 23 of this section. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill establishes a shared solar net metering 28 cooperative program. 29 The bill specifies that an “electric utility” for purposes 30 of the bill is a public utility that provides electricity 31 to the public for compensation and is required to be 32 rate-regulated under Code chapter 476. The bill defines 33 “shared solar net metering cooperative” or “cooperative” 34 to mean a distributed generation facility that generates 35 -3- LSB 2086XS (2) 90 es/rn 3/ 5

S.F. 332 electricity through ground-mounted or roof-mounted solar 1 panels whereby subscribers may receive bill credits for 2 the electricity generated in proportion to the size of the 3 customer’s subscription. The bill defines “subscriber” to 4 mean a customer of an electric utility who owns at least 5 one share of a subscription to a shared solar net metering 6 cooperative. The bill defines “subscription” to mean a 7 proportional contractual interest in a shared solar net 8 metering cooperative, including tax credits for which the 9 cooperative may be eligible. 10 The bill provides that a shared solar net metering 11 cooperative program is established to encourage and enhance 12 solar energy generation and the ability of electric public 13 utility customers to participate in and derive benefit from 14 alternate solar energy projects. 15 The bill provides that electric utility customers may 16 become subscribers of shared solar net metering cooperatives 17 by which subscribers may own the solar energy produced at 18 a location other than the location where the customer has 19 an electricity meter. Customers shall receive a credit in 20 proportion to the customer’s subscription. The bill provides 21 that a utility shall be required to purchase in accordance with 22 billing methods established pursuant to Code section 476.49. 23 A subscriber’s portion of the electricity purchased by the 24 utility shall be credited to the subscriber’s account with 25 the utility. The bill provides that the Iowa utilities board 26 shall develop interconnection agreements for utilization by a 27 shared solar net metering cooperative interconnecting with the 28 utility. 29 The bill provides that a shared solar net metering 30 cooperative may consist of subscribers located within 30 31 miles of the cooperative, shall not consist of out-of-state 32 subscribers, and shall interconnect exclusively with one 33 electric utility. The bill provides that a subscriber may 34 include all of the subscriber’s electricity meters in the 35 -4- LSB 2086XS (2) 90 es/rn 4/ 5

S.F. 332 cooperative. The bill provides that a shared solar net 1 metering cooperative shall be limited to 10 subscribers 2 per cooperative with some or all of the subscribers having 3 alternative energy production facilities that produce solar 4 energy. Each subscriber shall be a customer of the same 5 utility and shall have at least one electricity meter. The 6 bill provides that shared solar net metering cooperatives may 7 be owned by investors. 8 The bill requires the Iowa utilities board to adopt rules 9 regarding implementation of the bill’s provisions. 10 -5- LSB 2086XS (2) 90 es/rn 5/ 5