Take Action: 2015 Iowa Legislation on Renewable Energy
The Iowa legislature is currently debating three pieces of legislation of special interest to renewable energy advocates in Iowa. To take action, call or email your Iowa Representative or Senator, with contact information found here. Some information here is take from the Iowa Environmental Council’s weekly legislative updates, which can be received by signing up at their site.
“NO” on SF406/HF548
SF406/HF548 imposes additional requirements for interconnection customers connecting renewable energy (wind, solar, etc) to install an external disconnect device, for local fire departments to maintain a registry of connected renewable energy systems and disconnection devices, and penalties of $1,000 to $5,000 for violations. Formerly SSB1237. STATUS: On Senate debate calendar/ Formerly HSB191. SPONSOR: Study Bill; STATUS: On House debate calendar.
- Safety is always a good thing, but this bill unfortunately is an attack on customer- and locally-owned solar energy, read here for more background. Key talking points include: please support customer-owned solar and oppose this bill; making any such requirements retroactive is especially onerous and should be opposed; and if legislators truly believe the issue should be addressed, then ask the Iowa Utilities Board to do so (it is already addressed in utility rules).
“YES” on SSB1192
SSB1192 increases annual cap of solar tax incentive from $4.5 million to $6.5 million. SPONSOR: Study Bill; STATUS: Approved by subcommittee.
- First enacted in 2012 and expanded in 2014, Iowa’s solar tax incentive offsets up to 18% of the cost of a solar system for business and residential taxpayers, and provides a 60% match to the 30% federal tax incentive.
- The program targets homeowners, farmers and businesses, with a focus on installing solar on their property. The program cap is $4.5M annually with individual credit caps of $5,000 (residential) and $20,000 (business) to encourage many smaller projects across the state
- In 2014, the $4.5M cap was met and approximately $1.7M has carried over to 2015 as of February 1. That carry over will increase as applications for the incentive are accepted until May 1, 2015.
- Increasing the annual cap will significantly increase the private and federal dollars leveraged and the jobs created. An increase in the cap will reduce the waiting list and ensure that more taxpayers can claim the credit the year after they install solar.
“YES” on SSB1193
SSB1193 makes improvements to 476C production tax incentive for renewable energy. Changes include: increasing available incentives for commercial heat; revises waiting lists; creates a higher tax incentive for small wind turbines of 100 kW and less; sets aside incentives for small wind projects in Small Wind Innovation Zones. SPONSOR: Study Bill; STATUS: In Ways and Means. Subcommittee, Hogg, Bolkcom, and Feenstra.
- First created in 2005 and amended several times since, Iowa’s renewable energy production tax incentives provide tax credits annually according to the amount of renewable energy produced. There are several programs targeting different technologies and markets including wind, solar and biomass.
- The 476C program provides 1.5 cents per kilowatt-hour of electricity produced by wind, solar and biomass projects, as well as an incentive for commercial heat. This program targets smaller projects of 1 to 2 MW, although there are a few larger projects.
- The 476C ‘Wind’ program has a cap of 363 MW. There is a waiting list of 20 wind projects consisting of roughly 50 MW. However, not all projects on the list are still active, therefore, cleaning up the list will free up capacity for active projects to move forward.
- The other 476C ‘Other’ program has a cap of 53 MW and a waiting list of four solar projects consisting of 2.2 MW. Increasing the cap will allow these solar projects to move forward, as well as a number of others that are being developed but are not yet on the waiting list.