HF 2672

House
File
2672
-
Introduced
HOUSE
FILE
2672
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
629)
A
BILL
FOR
An
Act
relating
to
solar
energy
by
establishing
a
community
1
solar
facility
program.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5790HV
(2)
91
sb/js
H.F.
2672
Section
1.
Section
476.1,
Code
2026,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
5.
A
community
solar
facility
established
3
pursuant
to
section
476.50
shall
not
be
regarded
as
a
public
4
utility
for
purposes
of
this
chapter.
5
Sec.
2.
Section
476.25,
Code
2026,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
4.
The
furnishing
of
electricity
pursuant
8
to
a
community
solar
facility
under
section
476.50
shall
not
9
be
considered
an
unnecessary
duplication
of
electric
utility
10
facilities
and
shall
not
constitute
a
violation
of
this
11
section.
12
Sec.
3.
Section
476.49,
subsection
4,
unnumbered
paragraph
13
1,
Code
2026,
is
amended
to
read
as
follows:
14
If
the
commission
is
petitioned
by
an
electric
utility
after
15
On
July
1,
2027,
or
when
the
statewide
distributed
generation
16
penetration
rate
is
equal
to
five
percent,
whichever
is
17
earlier,
the
commission
shall
initiate
a
proceeding
to
develop
18
a
value
of
solar
methodology
and
rate
for
eligible
distributed
19
generation
facilities.
The
value
of
solar
rate
shall
be
20
determined
through
the
use
of
a
methodology
that
calculates
21
the
benefits
and
costs
an
eligible
distributed
generation
22
facility
provides
to,
or
imposes
on,
the
electric
system.
The
23
value
of
solar
methodology
shall
be
applied
independently
24
to
each
electric
utility.
When
the
commission
determines
25
the
value
of
solar
methodology,
it
shall
determine
if
there
26
is
a
need
for
separate
methodologies
for
other
distributed
27
generation
technologies
or
if
it
can
account
for
the
values
of
28
other
technologies
with
modifications
to
the
value
of
solar
29
methodology.
30
Sec.
4.
NEW
SECTION
.
476.50
Community
solar
facility
31
program
——
established.
32
1.
As
used
in
this
section,
unless
the
context
otherwise
33
requires:
34
a.
“Bill
credit”
means
the
monetary
value
of
the
electricity
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in
kilowatt-hours
generated
by
the
community
solar
facility
1
allocated
to
a
subscriber
to
offset
that
subscriber’s
2
electricity
bill.
3
b.
“Brownfield
site”
means
an
abandoned,
idled,
or
4
underutilized
industrial
or
commercial
facility
where
5
expansion
or
redevelopment
is
complicated
by
real
or
perceived
6
environmental
contamination,
including
wastewater
treatment
7
lagoons,
active
and
former
quarry
and
mining
ponds,
storm
water
8
detention
ponds,
cooling
ponds,
and
manure
ponds.
A
brownfield
9
site
includes
property
contiguous
with
the
property
on
which
10
the
individual
or
commercial
facility
is
located.
11
c.
(1)
Except
as
provided
in
subparagraph
(2),
“community
12
solar
facility”
means
a
distributed
generation
facility
that
13
generates
electricity
by
means
of
a
solar
photovoltaic
device
14
whereby
subscribers
receive
a
bill
credit
for
the
electricity
15
generated
in
proportion
to
the
size
of
the
customer’s
16
subscription
and
all
of
the
following
conditions
apply:
17
(a)
The
facility
is
located
on
one
or
more
parcels
of
18
land
within
the
assigned
area
of
service
of
that
utility
and
19
no
other
community
solar
facility
under
the
control
of
the
20
same
entity,
an
affiliate’s
entity,
or
an
entity
under
common
21
control
is
located
on
that
land.
22
(b)
At
the
time
the
facility
initially
meets
the
23
requirements
set
forth
in
the
tariff
to
participate
in
the
24
program,
the
facility
is
not
located
within
one
mile,
measured
25
from
the
point
of
interconnection,
of
a
community
solar
26
facility
under
the
control
of
the
same
entity.
27
(c)
The
facility
has
at
least
three
subscribers
once
it
28
becomes
operational.
29
(d)
The
facility
generates
not
more
than
five
megawatts
30
of
electricity
as
measured
in
alternating
current
unless
the
31
facility
is
located
on
a
brownfield
site,
whereby
the
facility
32
may
generate
not
more
than
twenty
megawatts
of
electricity
as
33
measured
in
alternating
current.
34
(e)
No
subscriber
holds
more
than
a
forty
percent
interest
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in
the
output
of
the
facility
unless
the
facility
is
located
on
1
the
same
parcel
of
land
as
the
subscriber’s
electric
service
2
premises
and
the
subscription
reflects
on-site
load
rather
than
3
resale
or
aggregation.
4
(f)
Not
less
than
sixty
percent
of
the
capacity
of
the
5
facility
is
subscribed
to
by
subscriptions
of
not
more
than
6
forty
kilowatts.
The
requirements
of
this
subparagraph
7
division
shall
not
apply
to
the
portion
of
a
facility’s
8
capacity
subscribed
pursuant
to
the
on-site
load
exception
9
described
in
subparagraph
division
(e),
provided
that
no
more
10
than
forty
percent
of
the
facility’s
total
capacity
may
be
11
excluded
from
the
requirements
of
this
subparagraph
division
12
under
that
exception.
13
(2)
A
distributed
generation
facility
qualifies
as
a
14
community
solar
facility
if
the
distributed
generation
facility
15
generates
not
more
than
one
megawatt
of
electricity
as
measured
16
in
alternating
current
and
meets
the
conditions
described
in
17
subparagraph
(1),
subparagraph
divisions
(a),
(b),
and
(d),
18
even
if
the
distributed
generation
facility
does
not
meet
any
19
of
the
conditions
described
in
subparagraph
(1),
subparagraph
20
divisions
(c),
(e),
and
(f).
21
d.
“Electric
utility”
means
a
public
utility
that
furnishes
22
electricity
to
the
public
for
compensation
that
is
required
to
23
be
rate-regulated
under
this
chapter.
24
e.
“Subscriber”
means
a
customer
of
an
electric
utility
25
subject
to
this
section
who
owns
one
or
more
subscriptions
to
a
26
community
solar
facility
interconnected
with
that
utility.
27
f.
“Subscriber
organization”
means
a
for-profit
or
nonprofit
28
entity
that
owns
or
operates
one
or
more
community
solar
29
facilities.
30
g.
“Subscription”
means
a
proportional
contractual
interest
31
in
a
community
solar
facility
under
which
the
estimated
bill
32
credits
of
the
subscriber
do
not
exceed
the
average
annual
33
bill
for
the
customer
account
to
which
the
subscription
is
34
attributed.
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2.
a.
A
community
solar
facility
program
is
established
1
to
encourage
and
enhance
the
generation
of
solar
energy
and
to
2
encourage
and
enhance
the
ability
of
electric
utility
customers
3
to
participate
in
and
derive
benefit
from
alternate
solar
4
energy
projects.
5
b.
A
community
solar
facility
authorized
under
this
6
section
shall
not
serve
or
offer
to
serve
electric
customers
7
in
an
exclusive
service
area
assigned
to
a
rural
electric
8
cooperative,
nor
shall
a
community
solar
facility
authorized
9
under
this
section
construct
facilities
in
an
exclusive
service
10
area
assigned
to
a
rural
electric
cooperative
unless
expressly
11
authorized
by
the
rural
electric
cooperative
in
whose
exclusive
12
service
area
the
facility
would
be
located.
13
c.
An
electric
utility
shall
provide
a
bill
credit
to
a
14
subscriber’s
subsequent
monthly
electric
bill.
Any
amount
of
15
the
bill
credit
that
exceeds
the
subscriber’s
monthly
bill
16
shall
be
carried
over
in
the
subscriber’s
account
and
applied
17
to
the
next
month’s
bill
within
the
subscriber’s
annual
billing
18
period.
Any
bill
credits
remaining
at
the
conclusion
of
the
19
subscriber’s
annual
billing
period
shall
be
forfeited.
20
d.
An
electric
utility
shall
be
required
to
bill
subscribers
21
to
a
community
solar
facility
in
accordance
with
section
22
476.49,
to
the
extent
that
section
does
not
conflict
with
this
23
section.
24
e.
(1)
A
community
solar
facility
authorized
under
25
this
section
shall
be
eligible
to
provide
bill
credits
to
26
subscribers
only
after
the
commission
has
approved
a
value
27
of
solar
methodology
and
rate
for
community
solar
pursuant
28
to
section
476.49.
Bill
credits
shall
be
based
on
the
29
commission-approved
value
of
solar
rate
established
pursuant
30
to
section
476.49.
31
(2)
The
commission
shall
ensure
the
value
of
solar
32
methodology
and
rate
for
community
solar,
established
pursuant
33
to
section
476.49,
appropriately
reflects
the
costs
and
34
benefits
of
community
solar
energy
generation
and
ensures
that
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nonparticipating
customers
are
not
required
to
bear
costs
1
directly
attributable
to
the
community
solar
facility
program.
2
(3)
A
community
solar
facility
shall
be
deemed
an
eligible
3
distributed
generation
facility
for
purposes
of
section
476.49.
4
f.
An
electric
utility
shall
review
its
interconnection
5
processes
to
ensure
they
are
adequate
to
facilitate
the
6
efficient
and
cost-effective
interconnection
of
community
solar
7
facilities
and
allow
an
investor-owned
electric
utility
to
8
recover
reasonable
interconnection
costs
for
each
community
9
solar
facility.
Such
interconnection
costs
shall
be
the
10
responsibility
of
the
subscriber
organization
or
owner
of
11
the
community
solar
facility
and
shall
not
be
applied
to
12
nonparticipating
ratepayers.
Interconnection
facilities
and
13
upgrades
funded
by
the
subscriber
organization
or
owner
of
the
14
community
solar
facility
shall
become
part
of
the
electric
15
utility’s
distribution
system
and
may
enhance
system
capacity,
16
reliability,
and
operational
flexibility
for
all
customers.
17
g.
A
subscriber
may
subscribe
all
of
their
electricity
18
meters
to
a
community
solar
facility.
19
h.
Community
solar
facilities
may
be
owned
by
investors.
20
i.
An
electric
utility
shall
provide
a
bill
credit
to
21
a
subscriber’s
subsequent
monthly
electric
bill
for
the
22
proportional
output
of
a
community
solar
facility
attributable
23
to
that
subscriber
for
not
less
than
twenty-five
years
from
the
24
date
the
solar
facility
is
first
placed
into
operation.
25
j.
A
subscriber
organization
shall
periodically
and
in
26
a
standardized
electronic
format
provide
to
the
electric
27
utility
whose
service
territory
includes
the
location
of
the
28
subscriber
organization’s
community
solar
facility
a
subscriber
29
list
indicating
the
percentage
of
generation
attributable
30
to
each
of
the
electric
utility’s
retail
customers
who
are
31
subscribers
to
a
community
solar
facility
in
accordance
with
32
the
subscriber’s
portion
of
the
output
of
the
community
solar
33
facility.
The
electric
utility
shall
create
a
platform
for
the
34
subscriber
organization
to
periodically
communicate
updates
to
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the
subscriber
list
to
reflect
canceling
subscribers
and
new
1
subscribers.
2
k.
An
electric
utility
shall
provide
a
subscriber
3
organization
a
report
each
month
in
a
standardized
electronic
4
format
detailing
the
total
value
of
bill
credits
generated
5
by
the
subscriber
organization’s
community
solar
facility
in
6
the
prior
month
and
the
amount
of
bill
credits
applied
to
each
7
subscriber.
8
l.
A
subscriber
organization
may
accumulate
bill
credits
9
if
all
of
the
electricity
generated
by
a
community
solar
10
facility
is
not
allocated
to
subscribers
in
a
given
month.
On
11
an
annual
basis,
the
subscriber
organization
shall
furnish
12
to
the
electric
utility
whose
service
territory
includes
the
13
location
of
the
subscriber
organization’s
community
solar
14
facility
instructions
for
distributing
accumulated
bill
15
credits
to
subscribers.
The
electric
utility
shall
apply
16
accumulated
credits
to
a
subscriber’s
electric
utility
account
17
in
accordance
with
section
476.49.
Any
credits
not
distributed
18
to
subscribers
annually
will
be
forfeited.
19
m.
Any
renewable
energy
credits
created
from
the
production
20
of
electricity
in
a
community
solar
facility
are
the
property
21
of
the
subscriber
organization
that
owns
or
operates
the
22
community
solar
facility.
The
subscriber
organization
may
23
sell,
accumulate,
retire,
or
distribute
to
subscribers
the
24
renewable
energy
credits
of
the
subscriber
organization.
25
3.
The
commission
shall
adopt
rules
to
implement
the
26
provisions
of
this
section
that
accomplish
all
of
the
27
following:
28
a.
Reasonably
allow
for
the
creation
and
financing
of
29
community
solar
facilities.
30
b.
Allow
all
customer
classes
to
participate
as
subscribers
31
to
a
community
solar
facility,
and
ensure
participation
32
opportunities
for
all
customer
classes.
33
c.
Prohibit
removing
a
customer
from
the
customer’s
34
applicable
customer
class
due
to
the
customer
subscribing
to
a
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community
solar
facility.
1
d.
Reasonably
allow
for
the
transferability
and
portability
2
of
subscriptions,
including
allowing
a
subscriber
to
retain
a
3
subscription
to
a
community
solar
facility
if
the
subscriber
4
moves
within
the
same
investor-owned
electric
utility’s
service
5
territory.
6
e.
Modify
existing
interconnection
standards,
fees,
7
and
processes
as
needed
to
facilitate
the
efficient
and
8
cost-effective
interconnection
of
community
solar
facilities
9
and
that
allow
an
electric
utility
to
recover
reasonable
10
interconnection
costs
for
each
community
solar
facility.
11
f.
Provide
for
consumer
protection
in
accordance
with
12
existing
laws.
The
commission
may
establish
a
registration
13
process
for
any
subscriber
organization
or
affiliate
seeking
14
to
solicit
community
solar
subscribers.
The
commission
may
15
adopt
rules
to
ensure
that
a
subscriber
organization
retains
16
marketing
information
for
a
reasonable
time
period
and
provides
17
to
subscribers
a
disclosure
in
plain
language
that
includes
all
18
fees
and
costs
associated
with
the
subscription.
19
g.
Allow
an
electric
utility
to
recover
costs
of
applying
20
bill
credits
under
this
section.
21
h.
Ensure
an
electric
utility
does
not
unreasonably
refuse
22
or
delay
interconnection
of
a
community
solar
facility.
23
i.
Require
a
subscriber
organization
to
satisfy
24
interconnection
process
benchmarks,
demonstrate
site
control,
25
and
obtain
all
applicable
nonministerial
permits
for
a
26
community
solar
facility
before
the
subscriber
organization
27
owns
or
operates
the
facility.
28
4.
a.
Not
later
than
eighteen
months
after
a
community
29
solar
facility
has
ceased
generating
electricity,
except
for
30
instances
when
the
owner
is
actively
working
to
recommence
31
production
of
electricity,
including
instances
following
the
32
occurrence
of
a
force
majeure
or
similar
event,
the
owner
of
33
the
community
solar
facility
shall
commence
decommissioning
of
34
the
facility.
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b.
Unless
the
property
owner
authorizing
the
community
1
solar
facility
to
operate
on
the
property
and
the
owner
of
2
the
community
solar
facility
mutually
agree
in
writing
on
3
an
alternative
condition
for
restoring
the
property,
the
4
decommissioning
plan
for
the
community
solar
facility
shall
5
include
all
of
the
following:
6
(1)
Removal
of
all
nonelectric
utility-owned
equipment,
7
conduits,
structures,
fencing,
and
foundations
to
a
depth
of
at
8
least
three
feet
below
grade.
9
(2)
Removal
of
all
graveled
areas
and
access
roads.
10
(3)
Restoration
of
the
property
to
a
condition
reasonably
11
similar
to
its
condition
before
the
commencement
of
12
construction,
except
for
ordinary
wear
and
degradation
and
any
13
changes
to
the
condition
of
the
property
caused
by
or
at
the
14
request
of
the
property
owner.
15
(4)
To
the
extent
practicable
and
seasonally
appropriate,
16
at
the
request
of
the
property
owner,
reseeding,
or
causing
the
17
reseeding
of,
any
cleared
areas
on
the
property.
18
5.
a.
The
owner
of
a
community
solar
facility
shall
19
maintain
sufficient
financial
assurances
in
the
form
of
a
bond,
20
a
parent
company
guaranty
with
a
minimum
investment
grade
21
credit
rating
for
the
parent
company
issued
by
a
major
domestic
22
credit
rating
agency,
or
a
letter
of
credit
to
provide
for
23
decommissioning.
24
b.
The
amount
of
financial
assurance
shall
be
equal
to
the
25
cost
of
decommissioning
the
community
solar
facility,
less
the
26
facility’s
salvage
value,
and
shall
be
updated
periodically,
27
but
not
less
than
every
ten
years.
28
c.
Decommissioning
and
salvage
value
costs
shall
be
29
calculated
by
an
independent
professional
engineer
at
the
30
expense
of
the
owner
of
the
community
solar
facility.
31
Sec.
5.
IMPLEMENTATION
OF
TARIFFS.
By
January
1,
2027,
an
32
electric
utility,
as
defined
in
section
476.50,
as
enacted
by
33
this
Act,
shall
file
new
or
updated
tariffs,
if
applicable,
to
34
implement
any
necessary
changes
resulting
from
this
Act.
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EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
establishes
a
community
solar
facility
program.
4
Under
current
law,
the
Iowa
utilities
commission
5
(commission)
is
required
to
initiate
a
proceeding
to
develop
a
6
value
of
solar
methodology
and
rate
for
eligible
distributed
7
generation
facilities
if
petitioned
by
an
electric
utility
8
on
or
after
July
1,
2027,
or
when
the
statewide
distributed
9
generation
penetration
rate
is
equal
to
5
percent,
whichever
10
is
earlier.
The
bill
removes
the
qualifier
that
requires
the
11
commission
be
petitioned
before
initiating
the
proceeding.
12
The
bill
specifies
that
“electric
utility”
for
purposes
13
of
the
bill
means
a
public
utility
that
provides
electricity
14
to
the
public
for
compensation
and
is
required
to
be
15
rate-regulated
under
Code
chapter
476.
The
bill
defines
16
“brownfield
site”
to
mean
an
abandoned,
idled,
or
underutilized
17
industrial
or
commercial
facility
where
expansion
or
18
redevelopment
is
complicated
by
real
or
perceived
environmental
19
contamination.
The
bill
defines
“community
solar
facility”
20
to
mean
a
distributed
generation
facility
that
generates
21
electricity
through
solar
panels
whereby
subscribers
may
22
receive
bill
credits
for
the
electricity
generated
in
23
proportion
to
the
size
of
the
customer’s
subscription.
The
24
bill
defines
“subscriber”
to
mean
a
customer
of
an
electric
25
utility
who
owns
at
least
one
share
of
a
subscription
to
a
26
community
solar
facility.
“Subscriber
organization”
means
27
a
for-profit
or
nonprofit
entity
that
owns
or
operates
28
one
or
more
community
solar
facilities.
The
bill
defines
29
“subscription”
to
mean
a
proportional
contractual
interest
in
a
30
community
solar
facility.
31
The
bill
establishes
a
community
solar
facility
program
to
32
encourage
and
enhance
solar
energy
generation
and
the
ability
33
of
electric
public
utility
customers
to
participate
in
and
34
derive
benefit
from
alternate
solar
energy
projects.
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The
bill
requires
an
electric
utility
to
bill
subscribers
in
1
accordance
with
billing
methods
established
pursuant
to
Code
2
section
476.49.
3
The
bill
requires
an
electric
utility
to
review
its
4
interconnection
processes
with
community
solar
facilities
5
to
ensure
adequacy,
efficiency,
and
cost-effectiveness
6
and
to
allow
an
investor-owned
electric
utility
to
recover
7
reasonable
interconnection
costs.
The
bill
directs
the
8
interconnection
to
be
the
responsibility
of
the
subscriber
9
organization
or
owner
of
the
community
solar
facility
10
and
not
applied
to
nonparticipating
ratepayers.
The
bill
11
states
that
interconnection
facilities
and
upgrades
funded
12
by
the
subscriber
organization
or
owner
of
the
community
13
solar
facility
shall
become
part
of
the
electric
utility’s
14
distribution
system
for
all
customers.
The
bill
allows
a
15
subscriber
to
include
all
of
the
subscriber’s
electricity
16
meters
in
the
community
solar
facility.
The
bill
provides
that
17
a
community
solar
facility
may
be
owned
by
investors.
The
18
bill
provides
specific
procedures
and
requirements
for
the
19
administration
of
bill
credits
and
subscriber
information.
20
The
bill
requires
the
commission
to
adopt
rules
regarding
21
implementation
of
the
bill’s
provisions.
22
The
bill
requires
the
owner
of
a
community
solar
facility
to
23
have
a
decommissioning
plan,
including
financial
assurances.
24
The
bill
provides
procedures
and
requirements
for
the
25
decommissioning
of
a
community
solar
facility.
26
The
bill
requires
an
electric
utility
to
file
new
or
updated
27
tariffs,
if
applicable,
by
January
1,
2027,
to
implement
any
28
necessary
changes
resulting
from
the
bill.
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