House File 518 - Introduced
HOUSE FILE
BY KELLEY
A BILL FOR
1 An Act relating to alternate and renewable energy by creating a
2 school wind generation revolving loan and grant program and
3 fund within the Iowa energy center to fund wind generation
4 projects, modifying the authorized uses of physical plant
5 and equipment revenue, and making an appropriation.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 266.39C, Code 2015, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 7. The Iowa energy center shall establish
1 4 and administer the school wind generation revolving loan and
1 5 grant program pursuant to section 473.21.
1 6 Sec. 2. Section 298.3, subsection 1, paragraph g, Code 2015,
1 7 is amended to read as follows:
1 8 g. (1) Expenditures for energy conservation, including
1 9 payments made pursuant to a guarantee furnished by a school
1 10 district entering into a financing agreement for energy
1 11 management improvements, limited to agreements pursuant to
1 12 section 473.19, 473.20, or 473.20A.
1 13 (2) Expenditures for the construction of alternate energy
1 14 production facilities, as defined in section 476.42, subsection
1 15 1, or the modification or repair of existing alternate energy
1 16 production facilities.
1 17 Sec. 3. NEW SECTION. 473.21 School wind generation
1 18 revolving loan and grant program.
1 19 1. The Iowa energy center created under section 266.39C
1 20 shall establish and administer a school wind generation
1 21 revolving loan and grant program to encourage wind generation
1 22 projects at school districts and Iowa community colleges
1 23 within the state. For purposes of this section, "wind
1 24 generation project" means the purchase and installation at a
1 25 school district or Iowa community college of a wind energy
1 26 conversion system or systems that in the aggregate will produce
1 27 electricity which has a nameplate generating capacity not in
1 28 excess of one hundred kilowatts.
1 29 2. a. A school wind generation revolving loan and grant
1 30 fund is created in the office of the treasurer of state to be
1 31 administered by the Iowa energy center.
1 32 b. The fund shall consist of any moneys appropriated
1 33 or otherwise directed to the fund. Section 8.33 shall not
1 34 apply to moneys in the fund. Notwithstanding section 12C.7,
1 35 subsection 2, interest or earnings on moneys in the fund shall
2 1 be credited to the fund.
2 2 c. Moneys in the fund shall be used to provide grants
2 3 and loans to fund wind generation projects as provided in
2 4 subsection 3.
2 5 3. Any school district or Iowa community college in this
2 6 state may apply to the Iowa energy center to receive a grant
2 7 and loan for a wind generation project, which grant and loan
2 8 shall be available as follows:
2 9 a. A school district or Iowa community college may receive a
2 10 grant for an amount not to exceed forty percent of the purchase
2 11 and installation costs associated with that part of the wind
2 12 generation project that will produce electricity which has a
2 13 nameplate generating capacity of ten kilowatts or less.
2 14 b. (1) A school district or Iowa community college may
2 15 receive a loan for an amount not to exceed forty percent of the
2 16 remaining purchase and installation costs associated with the
2 17 wind generation project that were not used to calculate the
2 18 grant pursuant to paragraph "a".
2 19 (2) Each loan under this paragraph "b" shall be for a
2 20 period not to exceed twenty years, shall bear no interest,
2 21 and shall be repayable to the fund created under this section
2 22 in installments as determined by the Iowa energy center.
2 23 The interest rate upon delinquent payments shall accelerate
2 24 immediately to the current legal usury limit.
2 25 (3) Any loan made pursuant to this program shall immediately
2 26 become due for payment upon sale of the wind energy conversion
2 27 system for which the loan was made.
2 28 Sec. 4. SCHOOL WIND GENERATION REVOLVING LOAN AND GRANT
2 29 PROGRAM ==== APPROPRIATION.
2 30 1. There is appropriated from the general fund of the state
2 31 to the school wind generation revolving loan and grant fund in
2 32 section 473.21 for the fiscal year beginning July 1, 2015, and
2 33 ending June 30, 2016, the following amount, or so much thereof
2 34 as is necessary, to be used for the purposes designated:
2 35 For providing grants and loans to fund wind generation
3 1 projects as provided in section 473.21:
3 2 .................................................. $ 5,000,000
3 3 2. Notwithstanding section 8.33, moneys appropriated
3 4 pursuant to this section shall not revert but shall remain
3 5 available to the school wind generation revolving loan
3 6 and grant fund for the purposes designated until expended.
3 7 Notwithstanding section 12C.7, subsection 2, earnings or
3 8 interest on moneys appropriated pursuant to this section shall
3 9 be credited to the school wind generation revolving loan and
3 10 grant fund and used for the purposes designated until expended.
3 11 EXPLANATION
3 12 The inclusion of this explanation does not constitute agreement with
3 13 the explanation's substance by the members of the general assembly.
3 14 This bill establishes a school wind generation revolving
3 15 loan and grant program within the Iowa energy center, creates
3 16 a corresponding fund, and makes a $5 million appropriation
3 17 to the fund for FY 2015=2016. Moneys in the fund will be
3 18 used to provide loans and grants to school districts and Iowa
3 19 community colleges to invest in wind generation projects.
3 20 "Wind generation project" is defined as the purchase and
3 21 installation of a wind energy conversion system or systems that
3 22 in the aggregate will produce electricity which has a nameplate
3 23 generating capacity not in excess of 100 kilowatts.
3 24 School districts or Iowa community colleges may apply to the
3 25 Iowa energy center to receive a grant and loan for the purchase
3 26 and installation costs of a wind generation project.
3 27 A grant not to exceed 40 percent of the purchase and
3 28 installation costs may be provided for that part of a wind
3 29 generation project that will produce electricity which has a
3 30 nameplate generating capacity of up to 10 kilowatts. If the
3 31 wind generation project will produce electricity which has a
3 32 nameplate generating capacity of greater than 10 kilowatts,
3 33 a school district or Iowa community college may receive the
3 34 grant listed above and a loan not to exceed 40 percent of the
3 35 remaining purchase and installation costs that are in excess of
4 1 those established for the grant.
4 2 Each loan provided in the bill shall be for a period not to
4 3 exceed 20 years, shall bear no interest, and shall be repayable
4 4 to the fund in installments determined by the Iowa energy
4 5 center. The interest rate upon delinquent payments shall
4 6 accelerate immediately to the current legal usury limit. Loans
4 7 shall become due immediately upon the sale of the wind energy
4 8 conversion system for which the loan was made.
4 9 Additionally, the bill adds as one of the authorized uses
4 10 of physical plant and equipment levy revenues by a school
4 11 district expenditures for the construction of alternate energy
4 12 production facilities as defined in Code section 476.42,
4 13 subsection 1, or the modification or repair of existing
4 14 alternate energy production facilities.
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