Bill Text: IA HF475 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to alternate energy by allowing the establishment of community solar garden projects.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-05 - Subcommittee, Cownie, Oldson, and Soderberg. H.J. 479. [HF475 Detail]
Download: Iowa-2015-HF475-Introduced.html
House File 475 - Introduced HOUSE FILE BY KELLEY A BILL FOR 1 An Act relating to alternate energy by allowing the 2 establishment of community solar garden projects. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1455YH (2) 86 rn/nh PAG LIN 1 1 Section 1. Section 476.1, Code 2015, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 5A. A community solar garden project 1 4 established pursuant to section 476.49 shall not be regarded as 1 5 a public utility for purposes of this chapter. 1 6 Sec. 2. Section 476.25, Code 2015, is amended by adding the 1 7 following new unnumbered paragraph: 1 8 NEW UNNUMBERED PARAGRAPH The furnishing of electricity 1 9 pursuant to a community solar garden project under section 1 10 476.49 shall not be considered an unnecessary duplication 1 11 of electric utility facilities and shall not constitute a 1 12 violation of this section. 1 13 Sec. 3. NEW SECTION. 476.49 Community solar garden 1 14 projects. 1 15 1. Definitions. For purposes of this section, unless the 1 16 context otherwise requires: 1 17 a. "Community solar garden project" means an electric 1 18 generating facility with a nameplate generating capacity of 1 19 two megawatts or less that generates electricity by means of a 1 20 ground=mounted or roof=mounted solar photovoltaic device and 1 21 that is comprised of a minimum of five subscribers who jointly 1 22 share the beneficial use of the electricity generated by the 1 23 project. 1 24 b. "Subscriber" means a retail customer of an electric 1 25 utility subject to this division who owns a subscription and 1 26 who has identified one or more physical locations to which the 1 27 subscription shall be attributed or attached. 1 28 c. "Subscription" means a proportional interest in a 1 29 community solar garden project, together with a proportional 1 30 interest in any state or federal tax credits for which the 1 31 facility associated with the project may be eligible. 1 32 2. Program established. 1 33 a. A community solar garden project may be established 1 34 to encourage and enhance the ability of electric utility 1 35 customers to participate in and derive benefit from solar 2 1 energy projects. 2 2 b. A community solar garden project established pursuant to 2 3 this section shall be subject to the following requirements and 2 4 specifications: 2 5 (1) A project may be established by an electric utility 2 6 or any other for=profit or nonprofit entity or organization, 2 7 including a subscriber organization whose sole purpose shall be 2 8 beneficially owning and operating the project. Additionally, 2 9 a project may be constructed, owned, and operated by a third 2 10 party under contract with a subscriber organization and 2 11 pursuant to a lease, sale=leaseback transaction, operating 2 12 agreement, or other third=party ownership arrangement. 2 13 (2) Physical locations to which subscriptions are 2 14 attributed or attached shall be located within the same county 2 15 or municipality and within the same electric utility service 2 16 area. Each subscription shall represent at least one kilowatt 2 17 of the community solar garden project's generating capacity and 2 18 shall supply no more than one hundred twenty percent of the 2 19 average annual consumption of electricity by each subscriber 2 20 at the premises to which the subscription is attributed or 2 21 attached. Subscriptions may be transferred or assigned to a 2 22 subscriber organization or to any person or entity otherwise 2 23 qualifying as a subscriber pursuant to this section, and may 2 24 be continued following relocation of a subscriber to another 2 25 location within the same county or municipality and electric 2 26 utility service area otherwise meeting the requirements of this 2 27 section. A subscription following relocation may be subject 2 28 to adjustment to reflect any differences between the new and 2 29 previous premises' electricity usage rate. The board shall 2 30 determine transfer, assignment, and relocation criteria by 2 31 rule. 2 32 (3) Electricity generated pursuant to the project shall 2 33 be aggregated and then proportionately allocated to each 2 34 subscriber. Excess electricity generated by the project not 2 35 utilized at the premises to which a subscription is attributed 3 1 or attached may be sold pursuant to a power purchase agreement 3 2 entered into with the electric utility at the same rates 3 3 applicable to alternate energy production facilities pursuant 3 4 to section 476.43. 3 5 (4) Notwithstanding the maximum purchase and ownership 3 6 restrictions contained in section 476.44, an electric utility 3 7 subject to this division shall enter into one or more power 3 8 purchase agreements with one or more projects to purchase a 3 9 minimum of five hundred kilowatts of electricity annually. The 3 10 board may by rule adjust this requirement on or after July 1, 3 11 2018. 3 12 (5) Federal or state tax credits for which the community 3 13 solar garden facility associated with the project qualifies 3 14 shall be proportionately allocated to each subscriber. 3 15 3. Rules. The board shall adopt rules governing the 3 16 establishment of community solar garden projects pursuant to 3 17 this section. 3 18 EXPLANATION 3 19 The inclusion of this explanation does not constitute agreement with 3 20 the explanation's substance by the members of the general assembly. 3 21 This bill allows the establishment of community solar garden 3 22 projects. 3 23 The bill defines a "community solar garden project" to 3 24 mean a facility with a nameplate generating capacity of two 3 25 megawatts or less that generates electricity by means of a 3 26 ground=mounted or roof=mounted solar photovoltaic device and 3 27 that is comprised of a minimum of five subscribers who jointly 3 28 share the beneficial use of the electricity generated by the 3 29 project. The bill defines a "subscriber" to mean a retail 3 30 customer of an electric utility who owns a subscription and 3 31 who has identified one or more physical locations to which the 3 32 subscription shall be attributed or attached. The bill defines 3 33 a "subscription" to mean a proportional interest in a community 3 34 solar garden project, together with a proportional interest 3 35 in any tax credits for which the facility associated with the 4 1 project may be eligible. 4 2 The bill states that the objective of a project shall be to 4 3 encourage and enhance the ability of public utility customers 4 4 to participate in and derive benefit from solar energy 4 5 projects. 4 6 Regarding project ownership, the bill provides that 4 7 a project may be established by an electric or any other 4 8 for=profit or nonprofit entity or organization, including a 4 9 subscriber organization whose sole purpose is to beneficially 4 10 own and operate the project. A project can also be 4 11 constructed, owned, and operated by a third party under 4 12 contract with a subscriber organization and pursuant to a 4 13 lease, sale=leaseback transaction, operating agreement, or 4 14 other third=party ownership arrangement. 4 15 The bill provides that physical locations to which 4 16 subscriptions are attributed or attached must be located within 4 17 the same county or municipality and within the same electric 4 18 utility service area. The bill states that each subscription 4 19 shall represent at least one kilowatt of a project's generating 4 20 capacity and shall supply no more than 120 percent of the 4 21 average annual consumption of electricity by each subscriber 4 22 at the premises to which the subscription is attributed or 4 23 attached. The bill authorizes the transfer, assignment, or 4 24 relocation of subscriptions, under conditions to be determined 4 25 by the board by rule. 4 26 The bill states that electricity generated pursuant to 4 27 a project shall be aggregated and then proportionately 4 28 allocated to each subscriber, and that excess electricity 4 29 generated by the project not utilized at the premises to which 4 30 a subscription is attributed may be sold pursuant to a power 4 31 purchase agreement entered into with the electric utility 4 32 at the same rates applicable to alternate energy production 4 33 facilities pursuant to Code section 476.43. 4 34 The bill imposes purchase requirements on electric 4 35 utilities. The bill states that an electric utility shall 5 1 enter into one or more power purchase agreements with one 5 2 or more projects to purchase a minimum of 500 kilowatts of 5 3 electricity annually. The bill provides that the board may by 5 4 rule adjust this requirement on or after July 1, 2018, and that 5 5 subscribers shall qualify for the federal and state tax credits 5 6 for which the community solar garden facility qualifies on a 5 7 proportionate basis. 5 8 The bill provides that a community solar garden project 5 9 shall not be considered a public utility subject to the 5 10 regulatory provisions of Code chapter 476, and that such a 5 11 project does not violate provisions contained in Code chapter 5 12 476 prohibiting the unnecessary duplication of electric utility 5 13 facilities. LSB 1455YH (2) 86 rn/nh
