S.F. _____ Section 1. Section 476C.1, subsection 6, paragraph e, Code 1 2015, is amended to read as follows: 2 e. (1) For applications filed on or after July 1, 2011, 3 is a facility of not less than three-fourths megawatts of 4 nameplate generating capacity or the energy production capacity 5 equivalent if all or a portion of the renewable energy produced 6 is for on-site consumption by the producer. 7 (2) For applications filed on or after July 1, 2015, in 8 addition to a facility qualifying pursuant to subparagraph 9 (1), is a facility of not more than three-fourths megawatts 10 of nameplate generating capacity or the energy production 11 equivalent if all of the renewable energy produced is for 12 on-site consumption by the producer. 13 Sec. 2. Section 476C.2, subsection 1, Code 2015, is amended 14 to read as follows: 15 1. a. A producer or purchaser of renewable energy may 16 receive renewable energy tax credits under this chapter in 17 an amount equal to one and one-half cents per kilowatt-hour 18 of electricity, or four dollars and fifty cents per million 19 British thermal units of heat for a commercial purpose, or 20 four dollars and fifty cents per million British thermal units 21 of methane gas or other biogas used to generate electricity, 22 or one dollar and forty-four cents per one thousand standard 23 cubic feet of hydrogen fuel generated by and purchased from 24 an eligible renewable energy facility or used for on-site 25 consumption by the producer. 26 b. Beginning January 1, 2016, a wind energy conversion 27 facility with a nameplate generating capacity of one hundred 28 kilowatts or less may receive renewable energy tax credits 29 under this chapter in an amount equal to six cents per 30 kilowatt-hour of electricity. 31 Sec. 3. Section 476C.3, subsection 4, Code 2015, is amended 32 to read as follows: 33 4. a. The maximum amount of nameplate generating capacity 34 of all wind energy conversion facilities the board may find 35 -1- LSB 1698XC (2) 86 rn/sc 1/ 5

S.F. _____ eligible under this chapter shall not exceed three hundred 1 sixty-three megawatts of nameplate generating capacity. 2 Beginning January 1, 2016, of the credits relinquished pursuant 3 to subsection 6, one megawatt of nameplate generating capacity 4 shall be reserved for wind energy conversion facilities 5 installed within a small wind innovation zone pursuant to 6 section 476.48. 7 b. The maximum amount of energy production capacity 8 equivalent of all other facilities the board may find eligible 9 under this chapter shall not exceed a combined output of 10 fifty-three megawatts of nameplate generating capacity and one 11 two hundred sixty-seven seventy-two billion British thermal 12 units of heat for a commercial purpose. Of the maximum 13 amount of energy production capacity equivalent of all other 14 facilities found eligible under this chapter , no more than 15 ten megawatts of nameplate generating capacity or energy 16 production capacity equivalent shall be allocated to any one 17 facility. Of the maximum amount of energy production capacity 18 equivalent of all other facilities found eligible under this 19 chapter , fifty-five one hundred ten billion British thermal 20 units of heat for a commercial purpose shall be reserved for 21 an eligible facility refuse conversion facilities. Of this 22 amount, fifty-five billion British thermal units of heat for a 23 commercial purpose shall be reserved for an eligible facility 24 that is a refuse conversion facility for processed, engineered 25 fuel from a multicounty solid waste management planning area. 26 The maximum amount of energy production capacity the board 27 may find eligible for a single refuse conversion facility 28 is fifty-five billion British thermal units of heat for a 29 commercial purpose. 30 Sec. 4. Section 476C.3, subsection 6, Code 2015, is amended 31 to read as follows: 32 6. a. The board shall , until December 31, 2015, maintain a 33 waiting list of facilities that may have been found eligible 34 under this section but for the maximum capacity restrictions 35 -2- LSB 1698XC (2) 86 rn/sc 2/ 5

S.F. _____ of subsection 4 . The priority of the waiting list shall be 1 maintained in the order the applications were received by 2 the board. The board shall remove from the waiting list any 3 facility that has subsequently been found ineligible under 4 this chapter . If additional capacity becomes available within 5 the capacity restrictions of subsection 4 , the board shall 6 grant approval to facilities according to the priority of the 7 waiting list before granting approval to new applications. An 8 owner of a facility on the waiting list shall provide the board 9 each year by August 31 with a sworn statement of verification 10 stating that the information contained in the application 11 for eligibility remains true and correct or stating that the 12 information has changed and providing the new information. 13 b. Beginning January 1, 2016, any facility awarded a tax 14 credit prior to January 1, 2010, under this chapter that 15 has not begun energy production or commenced substantial 16 construction on a renewable energy facility shall relinquish 17 the tax credit. A facility relinquishing a tax credit pursuant 18 to this paragraph “b” shall be eligible to reapply to the board. 19 Beginning January 1, 2016, facilities determined to be eligible 20 shall be awarded the appropriate tax credit in the order the 21 applications are received by the board on or after January 1, 22 2016. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill modifies provisions applicable to renewable energy 27 tax credits awarded pursuant to Code chapter 476C. 28 Currently, to be eligible for a renewable energy tax credit, 29 for applications filed on or after July 1, 2011, an applicant 30 must be a facility of not less than three-fourths megawatts 31 of nameplate generating capacity or the energy production 32 capacity equivalent if all or a portion of the renewable energy 33 produced is for on-site consumption by the producer. The bill 34 provides that in addition to such facilities, for applications 35 -3- LSB 1698XC (2) 86 rn/sc 3/ 5

S.F. _____ filed on or after July 1, 2015, an eligible facility may be a 1 facility of not more than three-fourths megawatts of nameplate 2 generating capacity or the energy production equivalent if all 3 of the renewable energy produced is for on-site consumption by 4 the producer. 5 The bill provides that beginning January 1, 2016, a wind 6 energy conversion facility with a nameplate generating capacity 7 of 100 kilowatts or less may receive renewable energy tax 8 credits in an amount equal to 6 cents per kilowatt-hour of 9 electricity. 10 Additionally, the Code chapter currently provides that the 11 maximum amount of energy production capacity equivalent of 12 eligible renewable energy facilities other than wind energy 13 conversion facilities shall not exceed a combined output of 14 53 megawatts of nameplate generating capacity and 167 billion 15 British thermal units of heat for a commercial purpose. The 16 bill increases the British thermal unit limit to 272 billion 17 British thermal units of heat for a commercial purpose, and 18 provides that out of this amount 110 billion British thermal 19 units of heat for a commercial purpose shall be reserved for 20 refuse conversion facilities. Code chapter 476C currently 21 reserves 55 billion British thermal units of heat for a 22 commercial purpose for a refuse conversion facility for 23 processed, engineered fuel from a multicounty solid waste 24 management planning area. 25 The bill also provides that a current waiting list of 26 facilities which would be eligible for a renewable energy tax 27 credit but for the Code chapter’s maximum capacity restrictions 28 will be maintained until December 31, 2015. A new waiting 29 list will commence on January 1, 2016, and beginning on that 30 date the bill provides that any facility awarded a credit 31 prior to January 1, 2010, that has not begun energy production 32 or commenced substantial construction on a renewable energy 33 facility shall relinquish the tax credit. The bill provides 34 that such a facility shall be eligible to reapply to the board, 35 -4- LSB 1698XC (2) 86 rn/sc 4/ 5

S.F. _____ and that facilities determined to be eligible for a tax credit 1 beginning January 1, 2016, shall be awarded the appropriate 2 tax credit in the order the applications are received by the 3 board on or after that date. The bill further provides that 4 beginning January 1, 2016, of the tax credits relinquished, one 5 megawatt of nameplate generating capacity shall be reserved for 6 wind energy conversion facilities installed within a small wind 7 innovation zone. 8 -5- LSB 1698XC (2) 86 rn/sc 5/ 5