House File 645 - Introduced HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 212) A BILL FOR 1 An Act modifying provisions applicable to the renewable energy 2 tax credit, and including effective date and retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1971HV (2) 86 rn/sc PAG LIN 1 1 Section 1. Section 476C.3, subsection 4, paragraph b, Code 1 2 2015, is amended to read as follows: 1 3 b. The maximum annual amount of energy production capacity 1 4 equivalent of all other facilities the board may find eligible 1 5 under this chapter shall not exceed a combined output of 1 6 fifty=three megawatts of nameplate generating capacity and one 1 7 hundred sixty=seven billion British thermal units of heat for 1 8 a commercial purpose. Of the maximum annual amount of energy 1 9 production capacity equivalent of all other facilities found 1 10 eligible under this chapter, no more than ten megawatts of 1 11 nameplate generating capacity or energy production capacity 1 12 equivalent shall be allocated annually to any one facility. 1 13 Of the maximum annual amount of energy production capacity 1 14 equivalent of all other facilities found eligible under this 1 15 chapter, fifty=five billion British thermal units of heat for a 1 16 commercial purpose shall be reserved annually for an eligible 1 17 facility that is a refuse conversion facility for processed, 1 18 engineered fuel from a multicounty solid waste management 1 19 planning area. The maximum amount of annual energy production 1 20 capacity the board may find eligible for a single refuse 1 21 conversion facility is fifty=five billion British thermal units 1 22 of heat for a commercial purpose. 1 23 Sec. 2. Section 476C.5, Code 2015, is amended to read as 1 24 follows: 1 25 476C.5 Certificate issuance period. 1 26 A producer or purchaser of renewable energymayshall 1 27 receive renewable energy tax credit certificates for a ten=year 1 28 period for each eligible renewable energy facility under this 1 29 chapter. The ten=year period for issuance of the tax credit 1 30 certificates begins with the date the purchaser of renewable 1 31 energy first purchases electricity, hydrogen fuel, methane 1 32 gas or other biogas used to generate electricity, or heat for 1 33 commercial purposes from the eligible renewable energy facility 1 34 for which a tax credit is issued under this chapter, or the 1 35 date the producer of the renewable energy first uses the energy 2 1 produced by the eligible renewable energy facility for on=site 2 2 consumption. Renewable energy tax credit certificates shall 2 3 not be issued for renewable energy purchased or produced for 2 4 on=site consumption after December 31, 2026. 2 5 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 6 immediate importance, takes effect upon enactment. 2 7 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 2 8 retroactively to January 1, 2014, for applications for a 2 9 renewable energy tax credit received by the board on or after 2 10 that date. 2 11 EXPLANATION 2 12 The inclusion of this explanation does not constitute agreement with 2 13 the explanation's substance by the members of the general assembly. 2 14 This bill modifies provisions applicable to the renewable 2 15 energy tax credit. 2 16 Currently, Code section 476C.3, subsection 4, specifies the 2 17 maximum amount of energy production capacity equivalent of all 2 18 renewable energy production facilities, other than wind energy 2 19 facilities, that the Iowa utilities board may find eligible 2 20 for a renewable energy tax credit. The bill modifies these 2 21 amounts, and allocations from these amounts, to refer to annual 2 22 amounts. 2 23 Additionally, current Code section 476C.5 provides that 2 24 the renewable energy tax credit may be received for a 10=year 2 25 period for an eligible renewable energy facility. The bill 2 26 deletes the word "may" and substitutes that the credit "shall" 2 27 be received for a 10=year period. 2 28 The bill takes effect upon enactment and is retroactively 2 29 applicable to January 1, 2014, for applications for a renewable 2 30 energy tax credit received by the Iowa utilities board on or 2 31 after that date. LSB 1971HV (2) 86 rn/sc