H.F. 2672 Section 1. Section 476.1, Code 2026, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5. A community solar facility established 3 pursuant to section 476.50 shall not be regarded as a public 4 utility for purposes of this chapter. 5 Sec. 2. Section 476.25, Code 2026, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 4. The furnishing of electricity pursuant 8 to a community solar facility under section 476.50 shall not 9 be considered an unnecessary duplication of electric utility 10 facilities and shall not constitute a violation of this 11 section. 12 Sec. 3. Section 476.49, subsection 4, unnumbered paragraph 13 1, Code 2026, is amended to read as follows: 14 If the commission is petitioned by an electric utility after 15 On July 1, 2027, or when the statewide distributed generation 16 penetration rate is equal to five percent, whichever is 17 earlier, the commission shall initiate a proceeding to develop 18 a value of solar methodology and rate for eligible distributed 19 generation facilities. The value of solar rate shall be 20 determined through the use of a methodology that calculates 21 the benefits and costs an eligible distributed generation 22 facility provides to, or imposes on, the electric system. The 23 value of solar methodology shall be applied independently 24 to each electric utility. When the commission determines 25 the value of solar methodology, it shall determine if there 26 is a need for separate methodologies for other distributed 27 generation technologies or if it can account for the values of 28 other technologies with modifications to the value of solar 29 methodology. 30 Sec. 4. NEW SECTION . 476.50 Community solar facility 31 program —— established. 32 1. As used in this section, unless the context otherwise 33 requires: 34 a. “Bill credit” means the monetary value of the electricity 35 -1- LSB 5790HV (2) 91 sb/js 1/ 10

H.F. 2672 in kilowatt-hours generated by the community solar facility 1 allocated to a subscriber to offset that subscriber’s 2 electricity bill. 3 b. “Brownfield site” means an abandoned, idled, or 4 underutilized industrial or commercial facility where 5 expansion or redevelopment is complicated by real or perceived 6 environmental contamination, including wastewater treatment 7 lagoons, active and former quarry and mining ponds, storm water 8 detention ponds, cooling ponds, and manure ponds. A brownfield 9 site includes property contiguous with the property on which 10 the individual or commercial facility is located. 11 c. (1) Except as provided in subparagraph (2), “community 12 solar facility” means a distributed generation facility that 13 generates electricity by means of a solar photovoltaic device 14 whereby subscribers receive a bill credit for the electricity 15 generated in proportion to the size of the customer’s 16 subscription and all of the following conditions apply: 17 (a) The facility is located on one or more parcels of 18 land within the assigned area of service of that utility and 19 no other community solar facility under the control of the 20 same entity, an affiliate’s entity, or an entity under common 21 control is located on that land. 22 (b) At the time the facility initially meets the 23 requirements set forth in the tariff to participate in the 24 program, the facility is not located within one mile, measured 25 from the point of interconnection, of a community solar 26 facility under the control of the same entity. 27 (c) The facility has at least three subscribers once it 28 becomes operational. 29 (d) The facility generates not more than five megawatts 30 of electricity as measured in alternating current unless the 31 facility is located on a brownfield site, whereby the facility 32 may generate not more than twenty megawatts of electricity as 33 measured in alternating current. 34 (e) No subscriber holds more than a forty percent interest 35 -2- LSB 5790HV (2) 91 sb/js 2/ 10

H.F. 2672 in the output of the facility unless the facility is located on 1 the same parcel of land as the subscriber’s electric service 2 premises and the subscription reflects on-site load rather than 3 resale or aggregation. 4 (f) Not less than sixty percent of the capacity of the 5 facility is subscribed to by subscriptions of not more than 6 forty kilowatts. The requirements of this subparagraph 7 division shall not apply to the portion of a facility’s 8 capacity subscribed pursuant to the on-site load exception 9 described in subparagraph division (e), provided that no more 10 than forty percent of the facility’s total capacity may be 11 excluded from the requirements of this subparagraph division 12 under that exception. 13 (2) A distributed generation facility qualifies as a 14 community solar facility if the distributed generation facility 15 generates not more than one megawatt of electricity as measured 16 in alternating current and meets the conditions described in 17 subparagraph (1), subparagraph divisions (a), (b), and (d), 18 even if the distributed generation facility does not meet any 19 of the conditions described in subparagraph (1), subparagraph 20 divisions (c), (e), and (f). 21 d. “Electric utility” means a public utility that furnishes 22 electricity to the public for compensation that is required to 23 be rate-regulated under this chapter. 24 e. “Subscriber” means a customer of an electric utility 25 subject to this section who owns one or more subscriptions to a 26 community solar facility interconnected with that utility. 27 f. “Subscriber organization” means a for-profit or nonprofit 28 entity that owns or operates one or more community solar 29 facilities. 30 g. “Subscription” means a proportional contractual interest 31 in a community solar facility under which the estimated bill 32 credits of the subscriber do not exceed the average annual 33 bill for the customer account to which the subscription is 34 attributed. 35 -3- LSB 5790HV (2) 91 sb/js 3/ 10

H.F. 2672 2. a. A community solar facility program is established 1 to encourage and enhance the generation of solar energy and to 2 encourage and enhance the ability of electric utility customers 3 to participate in and derive benefit from alternate solar 4 energy projects. 5 b. A community solar facility authorized under this 6 section shall not serve or offer to serve electric customers 7 in an exclusive service area assigned to a rural electric 8 cooperative, nor shall a community solar facility authorized 9 under this section construct facilities in an exclusive service 10 area assigned to a rural electric cooperative unless expressly 11 authorized by the rural electric cooperative in whose exclusive 12 service area the facility would be located. 13 c. An electric utility shall provide a bill credit to a 14 subscriber’s subsequent monthly electric bill. Any amount of 15 the bill credit that exceeds the subscriber’s monthly bill 16 shall be carried over in the subscriber’s account and applied 17 to the next month’s bill within the subscriber’s annual billing 18 period. Any bill credits remaining at the conclusion of the 19 subscriber’s annual billing period shall be forfeited. 20 d. An electric utility shall be required to bill subscribers 21 to a community solar facility in accordance with section 22 476.49, to the extent that section does not conflict with this 23 section. 24 e. (1) A community solar facility authorized under 25 this section shall be eligible to provide bill credits to 26 subscribers only after the commission has approved a value 27 of solar methodology and rate for community solar pursuant 28 to section 476.49. Bill credits shall be based on the 29 commission-approved value of solar rate established pursuant 30 to section 476.49. 31 (2) The commission shall ensure the value of solar 32 methodology and rate for community solar, established pursuant 33 to section 476.49, appropriately reflects the costs and 34 benefits of community solar energy generation and ensures that 35 -4- LSB 5790HV (2) 91 sb/js 4/ 10

H.F. 2672 nonparticipating customers are not required to bear costs 1 directly attributable to the community solar facility program. 2 (3) A community solar facility shall be deemed an eligible 3 distributed generation facility for purposes of section 476.49. 4 f. An electric utility shall review its interconnection 5 processes to ensure they are adequate to facilitate the 6 efficient and cost-effective interconnection of community solar 7 facilities and allow an investor-owned electric utility to 8 recover reasonable interconnection costs for each community 9 solar facility. Such interconnection costs shall be the 10 responsibility of the subscriber organization or owner of 11 the community solar facility and shall not be applied to 12 nonparticipating ratepayers. Interconnection facilities and 13 upgrades funded by the subscriber organization or owner of the 14 community solar facility shall become part of the electric 15 utility’s distribution system and may enhance system capacity, 16 reliability, and operational flexibility for all customers. 17 g. A subscriber may subscribe all of their electricity 18 meters to a community solar facility. 19 h. Community solar facilities may be owned by investors. 20 i. An electric utility shall provide a bill credit to 21 a subscriber’s subsequent monthly electric bill for the 22 proportional output of a community solar facility attributable 23 to that subscriber for not less than twenty-five years from the 24 date the solar facility is first placed into operation. 25 j. A subscriber organization shall periodically and in 26 a standardized electronic format provide to the electric 27 utility whose service territory includes the location of the 28 subscriber organization’s community solar facility a subscriber 29 list indicating the percentage of generation attributable 30 to each of the electric utility’s retail customers who are 31 subscribers to a community solar facility in accordance with 32 the subscriber’s portion of the output of the community solar 33 facility. The electric utility shall create a platform for the 34 subscriber organization to periodically communicate updates to 35 -5- LSB 5790HV (2) 91 sb/js 5/ 10

H.F. 2672 the subscriber list to reflect canceling subscribers and new 1 subscribers. 2 k. An electric utility shall provide a subscriber 3 organization a report each month in a standardized electronic 4 format detailing the total value of bill credits generated 5 by the subscriber organization’s community solar facility in 6 the prior month and the amount of bill credits applied to each 7 subscriber. 8 l. A subscriber organization may accumulate bill credits 9 if all of the electricity generated by a community solar 10 facility is not allocated to subscribers in a given month. On 11 an annual basis, the subscriber organization shall furnish 12 to the electric utility whose service territory includes the 13 location of the subscriber organization’s community solar 14 facility instructions for distributing accumulated bill 15 credits to subscribers. The electric utility shall apply 16 accumulated credits to a subscriber’s electric utility account 17 in accordance with section 476.49. Any credits not distributed 18 to subscribers annually will be forfeited. 19 m. Any renewable energy credits created from the production 20 of electricity in a community solar facility are the property 21 of the subscriber organization that owns or operates the 22 community solar facility. The subscriber organization may 23 sell, accumulate, retire, or distribute to subscribers the 24 renewable energy credits of the subscriber organization. 25 3. The commission shall adopt rules to implement the 26 provisions of this section that accomplish all of the 27 following: 28 a. Reasonably allow for the creation and financing of 29 community solar facilities. 30 b. Allow all customer classes to participate as subscribers 31 to a community solar facility, and ensure participation 32 opportunities for all customer classes. 33 c. Prohibit removing a customer from the customer’s 34 applicable customer class due to the customer subscribing to a 35 -6- LSB 5790HV (2) 91 sb/js 6/ 10

H.F. 2672 community solar facility. 1 d. Reasonably allow for the transferability and portability 2 of subscriptions, including allowing a subscriber to retain a 3 subscription to a community solar facility if the subscriber 4 moves within the same investor-owned electric utility’s service 5 territory. 6 e. Modify existing interconnection standards, fees, 7 and processes as needed to facilitate the efficient and 8 cost-effective interconnection of community solar facilities 9 and that allow an electric utility to recover reasonable 10 interconnection costs for each community solar facility. 11 f. Provide for consumer protection in accordance with 12 existing laws. The commission may establish a registration 13 process for any subscriber organization or affiliate seeking 14 to solicit community solar subscribers. The commission may 15 adopt rules to ensure that a subscriber organization retains 16 marketing information for a reasonable time period and provides 17 to subscribers a disclosure in plain language that includes all 18 fees and costs associated with the subscription. 19 g. Allow an electric utility to recover costs of applying 20 bill credits under this section. 21 h. Ensure an electric utility does not unreasonably refuse 22 or delay interconnection of a community solar facility. 23 i. Require a subscriber organization to satisfy 24 interconnection process benchmarks, demonstrate site control, 25 and obtain all applicable nonministerial permits for a 26 community solar facility before the subscriber organization 27 owns or operates the facility. 28 4. a. Not later than eighteen months after a community 29 solar facility has ceased generating electricity, except for 30 instances when the owner is actively working to recommence 31 production of electricity, including instances following the 32 occurrence of a force majeure or similar event, the owner of 33 the community solar facility shall commence decommissioning of 34 the facility. 35 -7- LSB 5790HV (2) 91 sb/js 7/ 10

H.F. 2672 b. Unless the property owner authorizing the community 1 solar facility to operate on the property and the owner of 2 the community solar facility mutually agree in writing on 3 an alternative condition for restoring the property, the 4 decommissioning plan for the community solar facility shall 5 include all of the following: 6 (1) Removal of all nonelectric utility-owned equipment, 7 conduits, structures, fencing, and foundations to a depth of at 8 least three feet below grade. 9 (2) Removal of all graveled areas and access roads. 10 (3) Restoration of the property to a condition reasonably 11 similar to its condition before the commencement of 12 construction, except for ordinary wear and degradation and any 13 changes to the condition of the property caused by or at the 14 request of the property owner. 15 (4) To the extent practicable and seasonally appropriate, 16 at the request of the property owner, reseeding, or causing the 17 reseeding of, any cleared areas on the property. 18 5. a. The owner of a community solar facility shall 19 maintain sufficient financial assurances in the form of a bond, 20 a parent company guaranty with a minimum investment grade 21 credit rating for the parent company issued by a major domestic 22 credit rating agency, or a letter of credit to provide for 23 decommissioning. 24 b. The amount of financial assurance shall be equal to the 25 cost of decommissioning the community solar facility, less the 26 facility’s salvage value, and shall be updated periodically, 27 but not less than every ten years. 28 c. Decommissioning and salvage value costs shall be 29 calculated by an independent professional engineer at the 30 expense of the owner of the community solar facility. 31 Sec. 5. IMPLEMENTATION OF TARIFFS. By January 1, 2027, an 32 electric utility, as defined in section 476.50, as enacted by 33 this Act, shall file new or updated tariffs, if applicable, to 34 implement any necessary changes resulting from this Act. 35 -8- LSB 5790HV (2) 91 sb/js 8/ 10

H.F. 2672 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill establishes a community solar facility program. 4 Under current law, the Iowa utilities commission 5 (commission) is required to initiate a proceeding to develop a 6 value of solar methodology and rate for eligible distributed 7 generation facilities if petitioned by an electric utility 8 on or after July 1, 2027, or when the statewide distributed 9 generation penetration rate is equal to 5 percent, whichever 10 is earlier. The bill removes the qualifier that requires the 11 commission be petitioned before initiating the proceeding. 12 The bill specifies that “electric utility” for purposes 13 of the bill means a public utility that provides electricity 14 to the public for compensation and is required to be 15 rate-regulated under Code chapter 476. The bill defines 16 “brownfield site” to mean an abandoned, idled, or underutilized 17 industrial or commercial facility where expansion or 18 redevelopment is complicated by real or perceived environmental 19 contamination. The bill defines “community solar facility” 20 to mean a distributed generation facility that generates 21 electricity through solar panels whereby subscribers may 22 receive bill credits for the electricity generated in 23 proportion to the size of the customer’s subscription. The 24 bill defines “subscriber” to mean a customer of an electric 25 utility who owns at least one share of a subscription to a 26 community solar facility. “Subscriber organization” means 27 a for-profit or nonprofit entity that owns or operates 28 one or more community solar facilities. The bill defines 29 “subscription” to mean a proportional contractual interest in a 30 community solar facility. 31 The bill establishes a community solar facility program to 32 encourage and enhance solar energy generation and the ability 33 of electric public utility customers to participate in and 34 derive benefit from alternate solar energy projects. 35 -9- LSB 5790HV (2) 91 sb/js 9/ 10

H.F. 2672 The bill requires an electric utility to bill subscribers in 1 accordance with billing methods established pursuant to Code 2 section 476.49. 3 The bill requires an electric utility to review its 4 interconnection processes with community solar facilities 5 to ensure adequacy, efficiency, and cost-effectiveness 6 and to allow an investor-owned electric utility to recover 7 reasonable interconnection costs. The bill directs the 8 interconnection to be the responsibility of the subscriber 9 organization or owner of the community solar facility 10 and not applied to nonparticipating ratepayers. The bill 11 states that interconnection facilities and upgrades funded 12 by the subscriber organization or owner of the community 13 solar facility shall become part of the electric utility’s 14 distribution system for all customers. The bill allows a 15 subscriber to include all of the subscriber’s electricity 16 meters in the community solar facility. The bill provides that 17 a community solar facility may be owned by investors. The 18 bill provides specific procedures and requirements for the 19 administration of bill credits and subscriber information. 20 The bill requires the commission to adopt rules regarding 21 implementation of the bill’s provisions. 22 The bill requires the owner of a community solar facility to 23 have a decommissioning plan, including financial assurances. 24 The bill provides procedures and requirements for the 25 decommissioning of a community solar facility. 26 The bill requires an electric utility to file new or updated 27 tariffs, if applicable, by January 1, 2027, to implement any 28 necessary changes resulting from the bill. 29 -10- LSB 5790HV (2) 91 sb/js 10/ 10