Senate Study Bill 1265 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) 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 1971XC (6) 86 rn/sc

S.F. _____ Section 1. Section 476C.3, subsection 4, paragraph b, Code 1 2015, is amended to read as follows: 2 b. The maximum amount of energy production capacity 3 equivalent of all other facilities the board may find eligible 4 under this chapter shall not exceed a combined output of 5 fifty-three megawatts of nameplate generating capacity and 6 one hundred sixty-seven billion British thermal units of heat 7 for a commercial purpose. Of the maximum amount of energy 8 production capacity equivalent of all other facilities found 9 eligible under this chapter , no more than ten megawatts of 10 nameplate generating capacity or energy production capacity 11 equivalent shall be allocated to any one facility. Of the 12 maximum amount of energy production capacity equivalent of all 13 other facilities found eligible under this chapter , fifty-five 14 billion British thermal units of heat for a commercial purpose 15 shall be reserved for an eligible facility that is a refuse 16 conversion facility for processed, engineered fuel from a 17 multicounty solid waste management planning area. The maximum 18 amount of annual energy production capacity the board may find 19 eligible for a single refuse conversion facility is fifty-five 20 billion British thermal units of heat for a commercial purpose. 21 Sec. 2. Section 476C.5, Code 2015, is amended to read as 22 follows: 23 476C.5 Certificate issuance period. 24 A producer or purchaser of renewable energy may shall 25 receive renewable energy tax credit certificates for a ten-year 26 period for each eligible renewable energy facility under this 27 chapter . The ten-year period for issuance of the tax credit 28 certificates begins with the date the purchaser of renewable 29 energy first purchases electricity, hydrogen fuel, methane 30 gas or other biogas used to generate electricity, or heat for 31 commercial purposes from the eligible renewable energy facility 32 for which a tax credit is issued under this chapter , or the 33 date the producer of the renewable energy first uses the energy 34 produced by the eligible renewable energy facility for on-site 35 -1- LSB 1971XC (6) 86 rn/sc 1/ 2

S.F. _____ consumption. Renewable energy tax credit certificates shall 1 not be issued for renewable energy purchased or produced for 2 on-site consumption after December 31, 2026. 3 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 4 immediate importance, takes effect upon enactment. 5 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 6 retroactively to January 1, 2014, for applications for a 7 renewable energy tax credit received by the board on or after 8 that date. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill modifies provisions applicable to the renewable 13 energy tax credit. 14 Currently, Code section 476C.3, subsection 4, specifies that 15 the maximum amount of energy production capacity the board 16 may find eligible for a single refuse conversion facility is 17 55 billion British thermal units of heat for a commercial 18 purpose. The bill provides that this maximum amount is an 19 annual maximum. 20 Additionally, current Code section 476C.5 provides that 21 the renewable energy tax credit may be received for a 10-year 22 period for an eligible renewable energy facility. The bill 23 deletes the word “may” and substitutes that the credit “shall” 24 be received for a 10-year period. 25 The bill takes effect upon enactment and is retroactively 26 applicable to January 1, 2014, for applications for a renewable 27 energy tax credit received by the Iowa utilities board on or 28 after that date. 29 -2- LSB 1971XC (6) 86 rn/sc 2/ 2