Iowa/EZ Policies

Jump to: navigation, search

EZ Policies for Iowa

To create a new entry use the form EZFeed Policy.
The EZ Policy Inventory is searchable by technology, policy type, and other fields with the EZ Policy Search Form.
Review process tips and editing help are here. Updates, additions and corrections are welcome!

To see federal policies go to the Federal Policies page.


Download EZ Policies for Iowa CSV (rows 1 - 96)

Policy Place Policy Type Active Implementing Sector Summary
Air Emissions Reduction Assistance Program (Iowa) Iowa Environmental Regulations Yes State/Province The State of Iowa may provide financial assistance in the form of loans and/or grants to projects aimed at reducing air emissions.
Alliant Energy Interstate Power and Light - Business and Farm Renewable Energy Rebates (Iowa) Iowa Utility Rebate Program No Utility The Alliant Energy Renewable Cash-Back Rewards program offers rebates for solar photovoltaics (PV), wind, renewable biomass, and anaerobic digesters. Businesses and farms that are Alliant Energy electric customers qualify for these rebates. Note that the above web site directs to the business incentives; the farm incentives are the same rate and can be found here. In order to apply for the program, customers must first use the online self-assessment tool. Alliant Energy will then contact customers to schedule an energy efficiency audit and a site assessment to determine the incentive level and the renewable energy potential. Customers can receive a higher "Energy Efficient" rebate rate for wind and solar PV if the business or farm meets certain energy efficient objectives, as determined by an energy efficiency audit.


The solar and wind rebates are based on the lesser of either the estimated first year output in kilowatt hours (kWh) or the optimal annual energy usage of the facility in kWh as follows:


  • Standard PV: The lesser of
    • estimated first year output in kWh x $0.50 or
    • optimal annual energy usage of the facility in kWh x .75 x $0.50
  • Energy Efficient PV: The lesser of
    • estimated first year output in kWh x $1.00 or
    • optimal annual energy usage of the facility in kWh x .75 x $1.00
  • Standard Wind: The lesser of
    • estimated first year output in kWh x $0.25 or
    • optimal annual energy usage of the facility in kWh x .75 x $0.25
  • Energy Efficient Wind: The lesser of
    • estimated first year output in kWh x $0.75 or
    • optimal annual energy usage of the facility in kWh x .75 x $0.75
Businesses can also receive rebates through the Energy Efficiency Rebate Program or the Farm Equipment Energy Efficiency Rebate Program in order to meet the energy efficient objectives.
Alliant Energy Interstate Power and Light - Residential Renewable Energy Rebates Iowa Utility Rebate Program Yes Utility The Alliant Energy Renewable Cash-Back Rewards program offers its electricity customers rebates for solar photovoltaics (PV), wind, and solar thermal water heating systems. Natural gas customers qualify for the solar thermal water heating reward.

In order to apply for the program, customers must first use the online self-assessment tool. Alliant Energy will then contact customers to schedule a Home Performance with Energy Star audit and a site assessment to determine renewable energy potential. Projects must be placed in service within one calendar year from the date of the online screening.
Customers can receive a higher "Energy Efficient" rebate rate for wind and solar PV if the homeowner meets one of the following criteria:

  1. The homeowner installs all upgrades with a five-year or less payback period as identified in a Home Performance With Energy Star
  2. The home passes the Alliant Energy's New Home Construction
  3. The homeowners annual electricity usage is less than 6,500 kWh


Rebate rates are as follows:

  • Energy Efficient Solar PV: $1.25/kWh x estimated first year output
  • Standard Solar PV: $0.75/kWh x estimated first year output
  • Energy Efficient Wind: $0.75/kWh x estimated first year output
  • Standard Wind: $0.25/kWh x estimated first year output
  • Solar Thermal Water Heater (electric): $0.35 x annual kWh savings
  • Solar Thermal Water Heater (natural gas): $2.50 x annual therm savings
Alternate Energy Revolving Loan Program (Iowa) Iowa State Loan Program Yes State/Territory The Alternate Energy Revolving Loan Program (AERLP), administered by the Iowa Energy Center, provides low-interest loans to individuals and organizations that seek to build renewable energy production facilities in Iowa.


Successful applicants receive a low-interest loan that consists of a combination of AERLP and lender-provided funds. The AERLP provides 50% of the total loan at 0% interest rate up to a maximum of $1,000,000. Rural electric cooperatives and municipal utilities are limited to one loan every 2 years with a maximum loan of $500,000. The remainder of the loan is provided by a lender at market rate.


Eligible Technologies


Eligible renewable energy technologies include solar, biomass, wind and small hydro.


Process

Technical applications for projects with a total financed capital cost of $50,000 or less are reviewed on a continuous basis. Higher cost project are reviewed on a quarterly basis, with deadlines on October 31, January 31, April 30, and July 31.


Submissions received during a given application cycle are reviewed and ranked. Those applications receiving the highest ranking are selected to receive loans, subject to the sufficient available program funds. After the Energy Center technically qualifies a project, the lending institution chosen by the applicant financially qualifies the applicant. The lender manages the entire loan and arranges repayment of the AERLP share of the loan to the Iowa Energy Center.


The maximum loan term allowed for the AERLP funds is 20 years. As the loans are paid back to the Iowa Energy Center, those funds are cycled back into the program and made available to new applicants.


Through the end of June 2012, the AERLP provided loans of more than $28.4 million in support of 195 renewable energy projects since its inception.
Alternative Energy Law (AEL) (Iowa) Iowa Renewables Portfolio Standard Yes State/Territory Iowa requires its two investor-owned utilities (MidAmerican Energy and Alliant Energy Interstate Power and Light) to own or to contract for a combined total of 105 megawatts (MW) of renewable generating capacity and associated energy production. Eligible resources include solar, wind, waste management, resource recovery, refuse-derived fuel, agricultural crops or residues, woodburning facilities, or small hydropower facilities.

The Iowa Utilities Board has allocated the 105 MW between the two utilities based on each utility's percentage of their combined estimated Iowa retail peak demand in 1990. This breaks down to:

  • MidAmerican Energy: 55.2 MW (52.57% of demand)
  • Alliant Energy Interstate Power and Light (IPL): 49.8 MW (47.43% of demand)

Compliance and Renewable Energy Credits
The IUB issued an order in November 2007 (in Docket No. AEP-07-1) approving specific generating facilities designated by MidAmerican and IPL for satisfying the utilities’ 105-MW requirement. This order cleared the way for the utilities to participate in renewable energy credit (REC) trading programs by differentiating between renewable electricity production capacity used to comply with Iowa law and that which remains uncommitted. For the present, IPL is fulfilling its entire obligation with wind while MidAmerican is fulfilling its obligation with wind and a small amount of biogas capacity.

In 2001, Iowa's governor established a secondary, voluntary goal of 1,000 MW of wind generating capacity by 2010.

History

Originally, for incentive ratemaking purposes, the Iowa Utilities Board (IUB) interpreted the 105 MW specified in the statute as "average capacity" based on kilowatt-hour output. As a result, the IUB's interpretation of the statute mandated the payment of incentive rates for 260 MW of renewable energy -- the nameplate capacity of 105 "average" MW. After the FERC overturned Iowa’s renewable incentive rate program in 1997, the IUB rescinded the "average capacity" rate making concept, which is no longer part of the IUB rules.
Ambient Air Quality Standards (Iowa) Iowa Environmental Regulations Yes State/Province These regulations set statewide ambient air quality standards for various contaminants. The state code follows the regulations set forth in the National Primary and Secondary Ambient Air Quality Standards as published in 40 Code of Federal Regulations Part 50, as amended, with the exception of the annual PM10 standard specified is under the Iowa code that applies it to new source permitting provisions.
Animal Agriculture Compliance Act (Iowa) Iowa Environmental Regulations Yes State/Province Sections of this chapter (311-312) describe the minimum manure management requirements to be followed by owners of livestock confinement feeding operations.
Brownfield/Grayfield Tax Credit Program (Iowa) Iowa Corporate Tax Incentive Yes State/Province The Brownfield/Grayfield Tax Credit Program offers qualifying projects tax credits of 24% for qualifying costs of a Brownfield project and 30% if the project meets green building requirements. Grayfield is also included in the tax credit program. A Grayfield project can receive tax credits of 12% of qualifying costs and 15% if the project meets green building requirements. Tax credits are available on a first come first served basis, with a maximum tax credit per project of $1,000,000 and a $10,000,000 maximum.
Coal Mining (Iowa) Iowa Environmental Regulations Yes State/Province These sections describe procedures for coal exploration and extraction, as well as permitting requirements relating to surface and underground coal mining. These sections also address land conservation and reclamation procedures following mining. All applications for coal mining operations must address the probable on- and off-site hydrologic consequences of the mining and reclamation operations.
Community Development Block Grant/Economic Development Infrastructure Financing (United States) United States Grant Program
Loan Program
Yes Federal Community Development Block Grant/Economic Development Infrastructure Financing (CDBG/EDIF) provides public infrastructure financing to help communities grow jobs, enable new business startups and expansions for existing businesses. State programs help achieve the national objective of CDBG by funding projects in which at least 51 percent of the new jobs created are made available to low and moderate income individuals. The maximum amounts awarded under the program are $1 million for new businesses locating to the state and $500,000 for existing businesses expanding in the state.
Competitive Natural Gas Providers (Iowa) Iowa Environmental Regulations Yes State/Province Competitive providers and aggregators of natural gas must be certified by the Utilities Board. Applicants must demonstrate the managerial, technical, and financial capability to perform the proposed activities, and granted certificates may be subject to restrictions on a case-by-case basis.
Controlling Pollution (Iowa) Iowa Environmental Regulations Yes State/Province Permits are required for new or existing stationary potential sources of pollution, including anaerobic lagoons. Permits may also be required for modifications that may increase emissions. These rules describe procedures for obtaining permits and list special requirements for certain areas and permit types.
County Land Preservation and Use Commissions (Iowa) Iowa Environmental Regulations Yes State/Province This ordinance creates Land Preservation and Use Commissions in each county to provide for the orderly use and development of land, to protect agricultural land from nonagricultural development, and to promote the efficient use and conservation of energy resources.
Criteria and Conditions for Authorizing Withdrawal, Diversion, and Storage of Water (Iowa) Iowa Environmental Regulations Yes State/Province These regulations describe the criteria for the issuance of water withdrawal, diversion, and storage permits for irrigation, industrial use, and power generation, among other uses. The regulations list permit requirements for water drawn from streams, surface water, and groundwater sources.
Dams – Fishways (Iowa) Iowa Environmental Regulations Yes State/Province No permanent dam or obstruction may be placed in the waters of the state without providing for fish passage.
Destruction or Alteration of a Dam (Iowa) Iowa Environmental Regulations Yes State/Province Permission from the Environmental Protection Commission is required prior to the removal, destruction, or alteration that results in a lower water level of any existing dam.
Economic Development Bond Program (Iowa) Iowa Bond Program Yes State/Province Through its Economic Development Bond Program, the Iowa Finance Authority (IFA) issues tax-exempt bonds on behalf of private entities or organizations for eligible purposes. The responsibility for repayment of the bonds rests with the applicant. Neither IFA nor the State of Iowa has any liability to repay the debt. IFA does not buy the bonds or sell the bonds. Applicants are responsible for finding an entity to purchase the bonds.

If the project is qualified and IFA will be the issuer of the bonds, an Economic Development Revenue Bond Program application must be completed and submitted to IFA, along with a $1,000 fee for applications up to $10 million and $2,500 fee for applications over $10 million. The application fee will be subtracted from the issuer fee at closing.

Once the application is submitted and the application fee is paid, the application is considered by IFA’s Board of Directors. IFA’s Board meets monthly. Applications must be received approximately ten days prior to a Board meeting to be considered at that meeting. If the application is approved by the Board of Directors, IFA will hold a public hearing and consider approving the issuance of the bonds for the borrower at a later meeting.

Because Federal tax requirements limit the amount and type of expenses that can be reimbursed with bond proceeds, the borrower should seek approval of the project by the Board before beginning work or expending funds on the project. Economic Development Bond applications will expire if the bonds are not issued within 18 months.

At the time of closing, IFA requires the borrower to pay a fee, usually 10 basis points, for administrative costs. IFA does not pay for costs or legal fees of the borrower or any other costs incurred as a result of the issuance of the bonds.

There will be a $2,500 charge for any resolution coming before the IFA Board that is not part of a bond issue that will have a closing fee. This would primarily include amending resolutions to prior bond issues.

The fee for a special IFA Board meeting is $2,500. This fee is in addition to any other fees charged.
Economic Development Set-Aside (EDSA) (Iowa) Iowa Industry Recruitment/Support Yes State/Province The Economic Development Set-Aside (EDSA) program provides financial assistance to those businesses and industries requiring such assistance in order to create new job opportunities. Assistance is provided to encourage new business start-ups, expansion of existing businesses, new capital investment, and/or the relocation of out-of-state businesses into Iowa. Assistance may be provided in the form of direct loans or forgivable loans.

Priority is given to projects that will create manufacturing jobs, add value to Iowa resources and/or increase exports out of state. Preference will be given to those businesses which will create or retain the greatest number of jobs with the least amount of program dollars. Refinancing or restructuring of existing loans and projects involving a single retail establishment will be considered low priorities. In order to receive funding, programs must be “necessary and appropriate” and only the minimum amount of EDSA funds necessary to meet this may be provided. The only three valid criteria to determine this need are: a financing gap, insufficient return on investment or location disadvantages.

The EDSA is funded by the Job Creation, Retention and Enhancement Fund, which assists businesses that are creating new jobs by providing a direct or forgivable loan or through infrastructure projects. It also provides industry driven training assistance designed to help the underemployed and working poor obtain the training and skills they need to move into available higher-skill, better-paying jobs. Assistance is provided to leverage private financing in business activities resulting in the creation or retention of jobs principally for low- and moderate-income persons. Although the program provides financial assistance to businesses, the application must come from a public “sponsor”. Iowa cities under 50,000 population (with the exception of Cedar Falls) and all counties are eligible to apply on behalf of business within their jurisdiction.
Effluent and Pretreatment Standards (Iowa) Iowa Environmental Regulations Yes State/Province These regulations describe prohibited discharges into surface water and groundwater systems and set effluent standards for secondary treatment facilities. Effluent limitations and pretreatment requirements typically follow federal standards, but additional standards are prescribed for sources not regulated by the federal government.
Electric Generating and Transmission Facilities (Iowa) Iowa Environmental Regulations Yes State/Province This section details responsibilities of the Iowa Utility Board, including the policies for electricity rate-making for the state of Iowa, certification of natural gas providers, and other policies applicable to electric generating and transmission facilities within the state.
Electric Power Generation and Transmission (Iowa) Iowa Environmental Regulations Yes State/Province Electric power generating facilities with a combined capacity greater than 25 MW, as well as associated transmission lines, may not be constructed or begin operation prior to the issuance of a certificate from the Utilities Board.
Electric Transmission Lines (Iowa) Iowa Environmental Regulations Yes State/Province Electric transmission lines capable of operating at 69 kV or greater cannot be constructed along, across, or over any public highways or grounds outside of cities without a franchise from the Utilities Division, as discussed in this section. In some circumstances, an expedited franchise may be obtained for the upgrade of existing transmission lines operating at 34.5 kV to 69 kV.
Eminent Domain Law (Iowa) Iowa Environmental Regulations Yes State/Province These regulations confer the power of eminent domain and describe procedures for exercising eminent domain in Iowa.
Emission Standards for Contaminants (Iowa) Iowa Environmental Regulations Yes State/Province These regulations list emissions standards for various contaminants, and contain special requirements for anaerobic lagoons. These regulations also describe alternative emissions limits, which may be implemented to allow higher than standard emissions of one contaminant in exchange for lower emissions of another contaminant.
Energy Development and Conservation (Iowa) Iowa Industry Recruitment/Support Yes State/Province This statute sets the development of energy efficiency and renewable energy resources as the goal of the state, and calls on the state to periodically evaluate available renewable energy resources and their current and future technological potential. The statute calls on state and local governments, as well as educational institutions and nonprofit organizations, to implement energy-saving measures and to use renewable energy whenever possible. A loan program is established to aid these entities in this endeavor. The state will also administer an energy city designation program, with the objective of encouraging cities to develop and implement innovative energy efficiency programs and to produce and use renewable energy.
Energy Replacement Generation Tax Exemption (Iowa) Iowa Corporate Exemption Yes State/Territory Iowa imposes a replacement generation tax of $0.0006 per kilowatt-hour (kWh) on various forms of electricity generated within the state. This tax is imposed in lieu of a property tax on generation facilities.

Under the Energy Replacement Generation Tax Exemption, the following facilities are exempt from the replacement tax:


  • All energy generated by methane gas conversion property to the extent the property is used in connection or conjunction with a publicly-owned sanitary landfill or used to collect waste that would otherwise be collected by or deposited with a publicly-owned sanitary landfill,
  • Wind energy conversion property that is eligible for a tax credit or that is subject to the special valuation of wind energy conversion property, and
  • Self-generators with on-site facilities. In order to qualify for the exemption, self -generators must wholly own or lease the facility in question and produce electricity solely for their own consumption, except for inadvertent unscheduled deliveries to their electric utility. However, facilities that do not consume all energy on-site are not required to pay the replacement tax on energy that is used to operate the facility.
In addition, large hydroelectric generators (100 megawatt or more) pay a reduced generation tax equivalent to $0.000001847 per kWh.
Enterprise Zones (Iowa) Iowa Industry Recruitment/Support
Enterprise Zone
Training/Technical Assistance
Yes State/Province The Enterprise Zones Program is an incentive for business expansion designed to stimulate development by targeting economically distressed areas in Iowa. Through state and local tax incentives, businesses and developers are encouraged to make new investments, and create or retain jobs in these areas. Businesses locating or expanding in an Enterprise Zone may receive property tax exemptions, funding for employee training, sales tax refunds, Iowa income tax credits, or other tax incentives. An incentive for housing development may also be available to developers and contractors building or rehabilitating housing in an established enterprise zone.

To be eligible, a business must make a minimum qualifying investment of $500,000 during a three year period. Qualifying investment includes the cost of land, buildings, improvements to buildings, manufacturing machinery and equipment, and/or computer hardware. The business must create or retain at least 10 full-time, project-related jobs over a three year period and maintain them for an additional two years. The business must provide some level of medical benefits to all full time employees. Additionally, the business must also provide all full-time employees with a standard medical and dental insurance plan of which the business pays 80% of the premiums for employee-only coverage, pays 50% of the premiums for family coverage, or provides a monetarily-equivalent benefit package. The business must pay new or retained employees a starting wage which is equal to or greater than 90% of the laborshed wage. Wage requirements. The business can not be a retail establishment or a business whose entrance is limited by coverage charge or membership. The business can not close or relocate its operation in one area of the state and relocate substantially the same operation in the Enterprise Zone. The local Enterprise Zone Commission and IEDA must approve the business' application for Enterprise Zone program incentives prior to project initiation.

A local property tax exemption of up to 100% of the value added to the property to a period not to exceed 10 years may be available. Additional funding is available for training new employees. If applicable, these funds would be in addition to those authorized under the Iowa New Jobs Training Program. Designated Enterprise Zones are eligible for a refund of state sales, service, or use taxes paid to contractors or subcontractors during construction. Also included is an investment tax credit of up to a maximum of 10% of the qualifying investment, amortized over 5 years. This tax credit is earned when the corresponding asset is placed in service and can be carried forward for up to seven additional years or until depleted, whichever occurs first. The State's refundable research activities credit may be increased while the business is participating in the program.
Environmental Management Systems (Iowa) Iowa Environmental Regulations
Fees
Siting and Permitting
Training/Technical Assistance
Yes State/Province A solid waste planning area (e.g., the land encompassed by a municipality with a comprehensive solid waste management policy) may qualify to be an Environmental Management System if it provides multiple environmental services in addition to solid waste disposal and plans for the continuous improvement of solid waste management by appropriately and aggressively mitigating the environmental impacts of solid waste disposal, including greenhouse gas emissions reduction measures. Environmental Management Systems qualify for financial and other incentives, as outlined below.

- An exemption from solid waste reduction goals imposed on sanitary landfills - A reduced tonnage fee of $3.65 per ton - Financial assistance as recommended by the council and approved by the commission

- An environmental management system is only required to file its updated comprehensive plan once every five years
Farmers Electric Cooperative (Kalona) - Renewable Energy Purchase Rate (Iowa) Iowa Performance-Based Incentive Yes Utility Farmers Electric Cooperative offers a production incentive to members that install qualifying wind and solar electricity generating systems. Customer-generators owning a qualifying grid-tied solar and wind energy systems are eligible for a $0.125 per kilowatt-hour (kWh) production incentive (up to 100% of monthly energy usage) for up to 10 years. Generation in excess of monthly usage will be credited to the customer-generator at a rate of $0.06 per kWh.


This is a buy-all, sell-all arrangement where the customer-generator purchases all of their electricity from the utility at the normal retail rate, and sells the entire output of their qualifying system to the utility. As a result, this arrangement requires two meters; one to measure the renewable energy system's production and one to measure the electricity used by the home or business.


The system must be operational and in service on or after January 1, 2008, and the customer-generator must participate in the utility's Green Power Project in order to qualify.
Farmers Electric Cooperative (Kalona) - Renewable Energy Rebates (Iowa) Iowa Utility Rebate Program No Utility Farmer's Electric Cooperative (Kalona) offers rebates for the installation of small wind and solar photovoltaic (PV) systems to its member customers. The amount of the rebate is set at $1,000 per peak kilowatt (kW) for both technologies, with a maximum rebate of $5,000. It is only available for systems placed in service after January 1, 2008. Rebates for both wind and solar systems require a site assessment and are subject to prior approval of metering and installation arrangements. Equipment must be new and permanently installed by a professional installer on the customer's premises. Total rebates are limited to $20,000 per year; rebates may be taken in addition to any state and federal incentives.

The utility also offers a special renewable energy purchase program for customer-generated renewable energy, as well as rebates and grants for a variety of different energy related improvement measures. Persons interested in this program should contact the utility for more information.
Flood Plain or Floodway Development (Iowa) Iowa Environmental Regulations Yes State/Province This section describes situations when a permit is needed for the construction, reconstruction, or modification of dams, waste or water treatment facilities, and pipeline crossings, among others.
Forestry Policies (Iowa) Iowa Environmental Regulations Yes State/Province Iowa has over 3 million acres of forested land, managed by the State Department of Natural Resources, Forestry Bureau. Iowa forests are summarized in DNR's 2010 Assessment "Iowa's Forests Today":

http://www.iowadnr.gov/Environment/Forestry/ForestryLinksPublications/IowaForestActionPlan.aspx

Iowa State University's Forestry Extension department is conducting research under a grant from the Leopold Center for Sustainable Agriculture to investigate the available forest biomass resources in the state, for potential bioenergy development: http://www.leopold.iastate.edu/grants/e2009-26

In 2008 the Iowa DNR issued "The Use of Wood Biomass for Distributed Energy Generation in Iowa", meant to examine the available woody biomass resources in Iowa, including forestry residues, for the purpose of fueling an ethanol production plant:

http://www.erc.uic.edu/assets/pdf/IowaWasteWoodStudy.pdf
Fuel Mix and Emissions Disclosure (Iowa) Iowa Generation Disclosure Yes State/Territory Iowa adopted regulations in 2003 that generally require rate-regulated electric utilities to disclose to customers the fuel mix and estimated emissions, in pounds per megawatt-hour (MWh), of electricity production. Such information must be disclosed to customers annually. This requirement excludes electric public utilities with fewer than 10,000 customers and electric cooperatives that have elected to allow the Iowa Utilities Board (IUB) to regulate their rates.
Greenhouse Gas Inventory and Registry (Iowa) Iowa Environmental Regulations Yes State/Province The Iowa Department of Natural Resources is required to establish a method for collecting emissions estimates from producers of greenhouse gases. Reporting is mandatory for some entities, and the Department may choose to phase in other reporting requirements as it deems fit. The Department also maintains a voluntary greenhouse gas registry.
Groundwater Protection Act (Iowa) Iowa Environmental Regulations Yes State/Province The Commissioner of the Iowa Department of Natural Resources is required to determine a general groundwater protection strategy and groundwater quality standards for the state, to be approved by the Iowa General Assembly. Chapter 455E contains more specific policies and state program goals relating to groundwater protection.
Hazardous Liquid Pipelines and Storage Facilities (Iowa) Iowa Environmental Regulations Yes State/Province This statute regulates the permitting, construction, monitoring, and operation of pipelines transporting hazardous liquids, including petroleum products and coal slurries. The definition used in these regulations does not include liquefied natural gas.
Hazardous Waste Disposal Sites (Iowa) Iowa Environmental Regulations Yes State/Province These sections contain information on fees and monitoring relevant to operators of hazardous waste disposal sites.
High Quality Job Creation Program (Iowa) Iowa Corporate Tax Incentive Yes State/Province The High Quality Jobs program provides qualifying businesses tax credits to off-set the cost incurred to locate, expand or modernize an Iowa facility. To qualify for this very flexible assistance package that includes tax credits, exemptions and/ or refunds, a business must be a non-retail or non-service business and meet wage requirements.

Eligibility Requirements:

- A business must meet wage thresholds requirements.

- Actual award amounts will be based on the business's level of need; the quality of the jobs; the percentage of created or retained jobs defined as high-quality; and the economic impact of the project.

- Created jobs must pay at least 100% of the qualifying wage threshold at the start of the project and 120% of the qualifying wage threshold by project completion and through the project maintenance period.

- Retained jobs must pay at least 120% of the qualifying wage threshold throughout the project completion and maintenance periods.

- The business must provide a sufficient benefits package to all full time employees that includes at least one of the following: -- Business pays 80% of medical and dental premiums for single coverage plans, OR -- Business pays 50% of medical and dental premiums for family coverage plans, OR -- Business pays for some level of medical and dental coverage and provides the monetary equivalent value through other employee benefits.


Tax Incentives:

- The State's refundable research activities credit may be increased while the business is participating in the program.

- A local property tax exemption of up to 100% of the value added to the property to a period not to exceed 20 years may be available.

- An investment tax credit equal to a percentage of the qualifying investment, amortized over five years. This tax credit is earned when the corresponding asset is placed in service and can be carried forward for up to seven additional years or until depleted, whichever occurs first.

- A refund of state sales, service or use taxes paid to contractors or subcontractors during construction.
Hydroelectric Plants (Iowa) Iowa Environmental Regulations Yes State/Province A permit is required from the Executive Council of Iowa for the construction, maintenance, or operation of any hydroelectric facility. All applications will be subject to a public hearing.
IADG Energy Bank Revolving Loan Program Iowa State Loan Program Yes State/Territory The Iowa Economic Development Authority in partnership with the Iowa Area Development Group (IADG) is offering Iowa businesses and industries a low interest financing option for energy efficiency improvements, renewable energy projects, energy management and implementation plans. The establishment of the IADG Energy Bank Revolving Loan Fund is intended to provide an ongoing source of low interest financing for the implementation of cost effective projects that will save energy and money, improve facilities and processes, and enhance job creation and profitability.
Initiative on Improving Our Watershed Attributes (I in IOWA) (Iowa) Iowa Environmental Regulations Yes State/Province This statute establishes a comprehensive water quality program which includes education, monitoring, technical assistance, incentives, and more efficient permitting procedures. The program also provides for the preservation and establishment of wetlands. The program is mainly geared towards the agricultural sector, but some elements may apply to other land use developments. The website of the Iowa Department of Natural Resources has a list of approved watershed management plans.
Interconnection Standards (Iowa) Iowa Interconnection Yes State/Territory Different rules govern the interconnection of distributed generation facilities in Iowa, depending on whether or not the interconnection is with a utility whose rates are regulated by the Iowa Utilities Board (IUB). Rate regulated utilities include only the state's two investor-owned utilities -- MidAmerican Energy and Interstate Power and Light (IPL) -- and Linn County Rural Electric Cooperative. The rates of municipal utilities and other rural electric cooperatives are not regulated by the IUB. In reality, only very limited guidelines are in place for utilities that are not rate-regulated by the IUB and since many details are left to the discretion of the utility, it is debatable whether these minimal provisions can be described as standards. The detailed standards for rate-regulated utilities adopted in May 2010 are described first below, followed by those that apply to both rate regulated and non-rate regulated utilities.

Net metering is also to available customers of investor-owned utilities for renewable energy facilities of up to 500 kW. Click here for information on net metering in Iowa.

Rate-Regulated Utilities Iowa's detailed interconnection standards apply to distributed generation facilities of up to 10 megawatts (MW)* that are not subject to the interconnection requirements of the Federal Energy Regulatory Commission (FERC), the Midwest Independent Transmission System Operator, Inc. (MISO), or the Mid-Continent Area Power Pool (MAPP). The definition of a distributed generation facility includes qualifying facilities (QFs) under the U.S. Public Utilities Regulatory Policy Act (PURPA) and alternative energy production (AEP) facilities as defined by Iowa law. AEP facilities are defined as electricity generation facilities which derive at least 75% of their energy input from solar, wind, waste management, resource recovery, refuse-derived fuel, agricultural crops or residues, or wood burning; as well as dam-based hydroelectric facilities. The rules are contained in IAC § 199-45 adopted by the IUB in May 2010.

Like many recent interconnection regulation adoptions in other states, the Iowa rules set four levels of review for interconnection requests. A project must meet all of the requirements of a given classification in order to be eligible for that level of expedited review. The level of review required is generally based on system capacity, whether system components are certified by a nationally recognized testing laboratory (NRTL), and whether the system is connected to a radial distribution circuit or to an area network. The basic definitions for each tier are as follows (see IAC § 199-45 for further details):

  • Tier 1: Lab-certified, inverter-based systems with a capacity rating of 10 kilowatts (kW) or less.
  • Tier 2: Lab-certified systems with a capacity rating of 2 MW or less, connected to a radial distribution network or a spot network serving one customer.
  • Tier 3: Lab-certified, inverter-based systems with a capacity rating of 50 kW or less which are connected to an area network and which will not export power; or lab-certified, non-exporting systems connected to a radial distribution circuit where the aggregate total of all generator nameplate capacity is no more than 10 MW (including the distributed generator applicant).
  • Tier 4: Systems with a capacity of 10 MW or less that do not meet the criteria for inclusion in a lower tier, including all systems using non-lab-certified components and those that require additional construction by the utility in order accommodate the facility.

The rules adopt IEEE 1547-2003 as the technical standard for evaluating interconnection requests. Systems are considered to be lab-certified if the equipment has been tested successfully in accordance with IEEE 1547.1, or certified as compliant with UL-1741, by a nationally recognized testing laboratory (NRTL). The rules also specify the technical screens which may be applied to applications at each level of review as well as time limits for different stages of the evaluation process. Generally speaking, higher level applications are subject to more intensive screening and longer time limits.

A lockable external disconnect switch (EDS) may be required at the utility's discretion, and the utility is permitted to make reasonable system monitoring and control requirements for systems larger than 1 MW. In addition, systems with a design capacity of 100 kW or less must be equipped with a device that automatically disconnects the system from the electric grid upon a loss of utility-supplied voltage.

The rules require the use of standardized interconnection applications and agreements, which have been developed by the IUB. The Level 1 application and agreement is a simplified version of the documents used for Level 2-4 interconnections. All applicants are required to carry and provide proof of some type of general liability insurance as part of the interconnection agreement. For facilities of less than 1 MW, homeowner's insurance is referred to by the rules as one acceptable form of general liability insurance without any specific minimum amount of coverage. For facilities of 1 MW or larger, the customer must maintain a general liability insurance policy with a limit of at least $2 million per occurrence and at least $4 million in aggregate, which also names the utility as an additional insured party.

Application fees are set at $50 for Level 1 applications; $100 plus $1 per kW for Level 2 applications; $500 plus $2 per kW for Level 3 applications; and $1,000 plus $2 per kW for Level 4 applications. Utilities are required to designate a point of contact for system interconnections and provide contact information on the utility web site.

Rate-Regulated and Non-Rate-Regulated Utilities Until the May 2010 adoption of detailed standards for rate regulated utilities, interconnection rules in Iowa were limited to those contained in IAC § 199-15.10. As with newly adopted Chapter 45, these rules were and are limited to PURPA QFs and AEP facilities. The contents of 15.10 largely address only power quality and safety issues, including: the use IEEE 1547-2003 as the technical standard for interconnection evaluations; allowing utilities discretion to require the installation of an EDS; a requirement that facilities of 100 kW or less have automatic disconnect capability upon the loss of grid voltage; granting utilities site access rights for inspection and testing; and allowing utilities to disconnect facilities in emergency situations. This rule was amended in May 2010 to update certain technical references and standards and harmonize it with new Chapter 45.

Beginning January 1, 2013, all AEP facilities must provide advanced notice of facility construction or installation. Facilities that will be attached directly or indirectly to an electric transmission or distribution line in a public utility's service territory must provide the utility with at least 30 days notice prior to the commencement of construction or installation. Facilities with a power purchase agreement with the utility are exempt from this requirement.

History In July 2006, the IUB began an inquiry into the development of uniform, detailed interconnection standards. A draft version of model interconnection procedures was issued for comment in April 2007, and in December 2008 additional comments were requested on the possibility of adopting interconnection rules similar to those adopted by Illinois. The IUB subsequently opened a formal rule making docket (RMU-2009-0008) in September 2009, using the Illinois rules as a starting point. After a series of further stakeholder consultations, final rules were adopted in May 2010.


*The actual language of the rules states generation capacity in terms of MVA or kVA, as opposed to MW or kW. In addition, while the standard rules only apply to systems up to 10 MW, they state that interconnection of larger facilities should take place using the Level 4 review process and agreement as a starting point, supplemented with mutually agreed upon modifications on the part of the customer and the utility.
Intergovernmental Solid Waste Services (Iowa) Iowa Environmental Regulations Yes State/Province Two or more local governments may form a public service monopoly, utilizing private recycling industries where possible, if such a monopoly is deemed necessary to protect public health and welfare and the environment through waste management practices involving solid waste reduction and resource recovery.
Interstate Natural Gas Pipelines (Iowa) Iowa Environmental Regulations Yes State/Province This statute confers upon the Iowa Utilities Board the authority to act as an agent of the federal government in determining pipeline company compliance with federal standards within the boundaries of the state.
Climate Action Plan (Iowa) Iowa Climate Policies No State/Province The Iowa Climate Change Advisory Council prepared a final report with recommendations on how to reduce statewide greenhouse gas emissions.

On April 27, 2007, Iowa Governor Chet Culver signed Senate File 485, a bill related to greenhouse gas emissions. Part of this bill created the Iowa Climate Change Advisory Council (ICCAC), which consists of 23 governor-appointed members from various stakeholder groups, and 4 nonvoting, ex officio members from the General Assembly.

ICCAC’s immediate responsibilities included submitting a proposal to the Governor and General Assembly that addresses policies, cost-effective strategies, and multiple scenarios designed to reduce statewide greenhouse gas emissions. Further, a preliminary report was submitted in January 2008, with a final proposal submitted in December 2008.

The Final Report, the Council presents two scenarios designed to reduce statewide greenhouse gas emissions by 50% and 90% from a 2005 baseline by the year 2050. For the 50% reduction by 2050, the Council recommends approximately a 1% reduction by 2012 and an 11% reduction by 2020. For the 90% reduction scenario, the Council recommends a 3% reduction by 2012 and a 22% reduction 2020. These interim targets

were based on a simple extrapolation assuming a linear rate of reduction between now and 2050. The plan includes an emissions target, and a comprehensive set of sector-based policies and measures.
Iowa Energy Bank (Iowa) Iowa State Loan Program Yes State/Territory The Iowa Energy Bank offers Iowa's public facilities, schools, area education agencies, colleges, universities, hospitals and local governments a 1% financing option for the implementation of renewable energy and energy efficiency projects. Eligible applicants need no upfront capital and loans are repaid using the energy bill savings. In order to get started, applicants complete a pre-application and provide an up-to-date energy study. Additional terms of the loan include a 2% origination fee, a 0.25% servicing fee, and a 15-year repayment period.


The Iowa Energy Bank program is actively marketed to eligible entities and has resulted in over $400 million in energy efficiency improvements. Program administration was moved to the Iowa Department of Administrative Services in 2011.
Iowa Land Recycling and Environmental Remediation Standards Act (Iowa) Iowa Environmental Regulations Yes State/Province This chapter establishes remediation standards for land, other than standards for water quality, hazardous conditions, underground storage tanks, and groundwater protection, which are discussed in other sections. Additionally, it establishes the Land Recycling Program, which provides incentives for the redevelopment of contaminated land.
Joint Electrical Utilities (Iowa) Iowa Environmental Regulations Yes State/Province Cities may establish utilities to acquire existing electric generating facilities or distribution systems. Acquisition, in this statute, is defined as city involvement, and includes purchase, lease, construction, reconstruction, extension, remodeling, improvement, repair, and equipping of the facility. This chapter does not limit the powers or authority of privately owned utility companies or electric cooperatives.
Land Use – Smart Planning (Iowa) Iowa Environmental Regulations Yes State/Province State agencies, local governments, and other public entities engaging in land use planning shall work to promote clean and renewable energy use, increased energy efficiency, and sustainable design and construction standards, while emphasizing the protection, preservation, and restoration of natural resources, agricultural land, and cultural and historic landscapes, and increasing the availability of open spaces and recreational facilities.
Life Cycle Cost Analysis of Public Facilities (Iowa) Iowa Environmental Regulations Yes State/Province All facilities using public funds for construction or renovation must undergo a life cycle analysis, which will consider energy efficiency and on-site energy equipment using the sun, wind, oil, natural gas, coal, or electricity as a power source. The goal is to optimize facility energy efficiency at an acceptable life cycle cost. The results of the analysis must be approved and used in the justification of the facility design before public funds are issued. Some exemptions apply.
Liquefied Natural Gas (Iowa) Iowa Environmental Regulations Yes State/Province This document adopts the standards promulgated by the National Fire Protection Association as rules for the transportation, storage, handling, and use of liquefied natural gas. The NFPA standards cover plant siting and layout, process equipment, stationary LNG storage containers, vaporization facilities, piping systems and components, instrumentation and electrical services, transfer of LNG and refrigerants, fire protection, safety and security, requirements for stationary applications using ASME containers, and operating, maintenance and personnel training.
Local Option - Special Assessment of Wind Energy Devices (Iowa) Iowa Property Tax Incentive Yes State/Territory Any city or county in Iowa may pass an ordinance assessing wind energy conversion equipment at a special valuation for property tax purposes, beginning at 0% of the net acquisition cost in the first assessment year and increasing annually by five percentage points to a maximum of 30% of the net acquisition cost in the 7th and succeeding years.

If a city or county repeals the ordinance, the wind energy property shall be valued at the special rate until the end of the 19th assessment year following the first assessment year. Once this period has ended, the property is valued at the market value rather than 30% of net acquisition cost. The taxpayer must file for the special valuation by February 1 of the assessment year in which the wind system is first assessed for property tax purposes.

An October 2008 opinion from the Iowa Department of Revenue (DOR) clarifies that Iowa Code § 427B.26 does not allow for partial assessments of wind energy property and that wind plants are not subject to assessment until they are completed.

If an ordinance has not been adopted, or if the taxpayer fails to file for the special valuation, the system shall be assessed by the DOR under Iowa Code 428.24 to 428.29 and 441.21(8). These statutes provide that the assessable and taxable value of property shall not increase with the new construction of wind or solar energy systems for five years. See the entry for Property Tax Exemption for Renewable Energy Systems for more details.
Loess Hills and Southern Iowa Development and Conservation (Iowa) Iowa Environmental Regulations Yes State/Province The Loess Hills Development and Conservation Authority, the Loess Hills Alliance, and the Southern Iowa Development and Conservation Authority are regional organizations with representatives from the municipal and nonprofit sectors and elected from the community. The organizations are tasked with providing development and technical assistance to landowners, counties, municipalities; sponsoring research; and promoting conservation in the Loess Hills region in Southern Iowa. The organizations also aim to develop and coordinate plans for projects related to the unique natural resources, rural development, and infrastructure problems of their respective regions.
Management of Specific Flood Plain Areas (Iowa) Iowa Environmental Regulations Yes State/Province Floodplain management orders by the Iowa Department of Natural Resources as well as approved local ordinances designate an area as a regulated floodplain. These regulations establish minimum standards for flood plain and floodway uses, limiting future construction in these areas.
Mandatory Utility Green Power Option (Iowa) Iowa Mandatory Utility Green Power Option Yes State/Territory All electric utilities operating in Iowa, including those not rate-regulated by the Iowa Utilities Board (IUB), are required to offer green power options to their customers. These programs allow customers to make voluntary contributions to support the development of renewable energy sources in Iowa. Utilities must file their program plans and tariff schedules with the IUB; however, the filings for non-rate-regulated utilities are intended to be for informational purposes only. This policy took effect January 1, 2004.
Methane Gas Conversion Property Tax Exemption (Iowa) Iowa Property Tax Incentive Yes State/Territory Note: This exemption is only available to facilities operated in connection or conjunction with a publicly-owned sanitary landfill. The exemption was available to other entities only for systems placed in service by December 31, 2012. Systems in place before this date are eligible to receive the property tax exemption for 10 years.


Under Iowa's methane gas conversion property tax exemption, real and personal property used to decompose waste and convert the waste to gas, collect the methane or other gases, convert the gas to energy, or to collect waste for these purposes is exempt from property tax. This section was formerly written to only apply to facilities operated in connection with or in conjunction with a publicly-owned sanitary landfill. However, in 2009 the law was revised by S.F. 478 (retroactively effective to January 1, 2008) to apply to other technologies that use waste materials to generate methane (e.g., anaerobic digesters). This revision expired after December 31, 2012; for facilities that are not located at publicly-owned sanitary landfills, the exemption may only be claimed if the facility is placed in service between January 1, 2008 and December 31, 2012. Such projects may only claim the exemption for 10 years, a restriction that is not placed on facilities at a publicly-owned sanitary landfill. If other fuels in addition to methane are burned, the exemption is equal to the ratio of methane in the overall fuel mix. The claimant must file an application (Form 54-065) annually with the local assessor by February 1 of each year in order to claim the exemption.
Midwest Independent System Operator (Multiple States) Montana
North Dakota
South Dakota
Minnesota
Iowa
Missouri
Wisconsin
Illinois
Michigan
Indiana
Kentucky
Manitoba
Interconnection Yes Non-Profit Midwest Independent Transmission System Operator (MISO) is a Regional Transmission Organization, which administers wholesale electricity markets in all or parts of 11 U.S. states and the Canadian province of Manitoba. MISO administers electricity transmission grids across the Midwest and into Canada, and provides tools, transmission planning strategies, and integration for utilities in those markets. MISO is working with PJM Interconnection to develop complementing system operations and one robust, non-discriminatory wholesale electricity market to meet the needs of all customers and stakeholders in 23 states, the District of Columbia and the Canadian province of Manitoba. The market is being developed through an open stakeholder process and is being designed to serve residents regardless of whether they reside in states with bundled or unbundled retail rates.
Midwest Interstate Compact on Low-Level Radioactive Waste (Multiple States) Indiana
Iowa
Minnesota
Missouri
Ohio
Wisconsin
Environmental Regulations Yes State/Province The Midwest Interstate Low-Level Radioactive Waste Compact is an agreement between the states of Indiana, Iowa, Minnesota, Missouri, Ohio, and Wisconsin that provides for the cooperative and safe disposal of commercial low-level radioactive waste. The Compact was enacted into law by each member state legislature during the period from 1982 through 1984, and received Congressional consent in 1985. The Midwest Interstate Low-Level Radioactive Waste Compact Commission is the administrative body of the Compact. It consists of one voting Commissioner from each of the six member states. Each state determines how it will appoint its Commissioner, and the state’s Governor must provide written notification to the Commission of the appointment of a Commissioner and any Alternate Commissioners.
Midwest Renewable Energy Tracking System (Multiple States) Illinois
Iowa
Minnesota
Montana
North Dakota
Ohio
South Dakota
Wisconsin
Manitoba
Green Power Purchasing Yes Non-Profit The Midwest Renewable Energy Tracking System (M-RETS®) tracks renewable energy generation in participating States and Provinces and assists in verifying compliance with individual state/provincial or voluntary Renewable Portfolio Standards (RPS) and objectives. M-RETS® is a tool to keep track of all relevant information about renewable energy produced and delivered in the region. Currently, several States and Provinces participate in M-RETS®: Illinois, Iowa, Manitoba, Minnesota, Montana, North Dakota, Ohio, South Dakota, and Wisconsin have policies in place requiring or strongly encouraging utility development of renewable resources. M-RETS® uses verifiable production data for all participating generators and creates a Renewable Energy Credit (REC) in the form of a tradable digital certificate for each MWh.
Mississippi River Partnership Council (Iowa) Iowa Environmental Regulations Yes State/Province The Mississippi River Partnership Council is a forum for city, county, state, agriculture, business, conservation, and environmental representatives and other stakeholders to discuss matters relevant to the health, management, and use of the Mississippi river. The council may work with local communities to develop local and regional strategies, and make recommendations to appropriate state and federal agencies. The council aims to promote sustainable economic development opportunities along the Mississippi, and to encourage the protection of critical habitats and the adoption of sustainable soil conservation and water quality best management practices.
Missouri River Preservation and Land Use Authority (Iowa) Iowa Environmental Regulations Yes State/Province The State Interagency Missouri River Authority engages in comprehensive planning for the Missouri River and surrounding territory, and to develop and implement strategies designed to preserve the area. New development or construction in or near the Missouri River is under the jurisdiction of this authority.
Municipal Support of Projects (Iowa) Iowa Environmental Regulations Yes State/Province Municipalities may choose to support projects, such as those which will generate electricity through the use of a renewable energy source, by tax-exempt bond financing; easements for roads, water mains and pipes, power lines, and pipelines; and by other means. This statute contains specific regulations for such practices.
Net Metering (Iowa) Iowa Net Metering Yes State/Territory Iowa's statutes do not explicitly authorize the Iowa Utilities Board (IUB) to mandate net metering, but this authority is implicit through the board's enforcement of PURPA and Iowa Code § 476.41 et seq. Iowa's net-metering subrule, adopted by the IUB in July 1984, applies to customers that generate electricity using alternate energy production facilities (AEPs). Net metering is available to all customer classes of Iowa's two investor-owned utilities -- MidAmerican Energy and Interstate Power and Light (IPL). There is no explicit limit on either the size of a net-metered system or on total enrollment in the IUB's subrule. However, separate rule waivers have allowed MidAmerican Energy and IPL to limit individual systems to 500 kilowatts (kW). Although Iowa's net-metering subrule requires utilities to purchase customers' net excess generation (NEG) at the utility's avoided-cost rate, subsequent rule waivers allow MidAmerican Energy and IPL customers to carry NEG forward for use in future months as a kilowatt-hour (kWh) credit. The net metering kWh offset effectively provides a credit at the customer's retail electricity rate. A detailed description of the Iowa net metering policy background is available here.
New Jobs Tax Credit (Iowa) Iowa Corporate Tax Incentive
Training/Technical Assistance
Yes State/Province The Iowa New Jobs Tax Credit is an Iowa corporate income tax credit and is available to a company that has entered into a New Jobs Training Agreement (260E) and expands their Iowa employment base by ten percent or more. The amount of this one-time tax credit will depend upon the wages a company pays and the year in which the tax credit is first claimed. The maximum tax credit in 2013 will be $1,560 per new employee. Unused tax credits may be carried forward up to ten years. The tax credit may be claimed on Form IA 133 found on the Iowa Department of Revenue Website.
Oil, Gas, and Metallic Minerals (Iowa) Iowa Environmental Regulations Yes State/Province Operators of oil, gas, and metallic mineral exploration and production operations are required to obtain a drilling permit from the Iowa Department of Natural Resources and file specific forms with the department. Procedures to apply for a permit to drill or deepen a well for oil, gas, or metallic minerals are contained in Summary of Procedures for Oil, Gas, and Metallic Minerals Operations.
Oil, Gas, and Minerals, Exploration and Production, Lease of Public Land (Iowa) Iowa Environmental Regulations Yes State/Province The state, counties and cities and other political subdivisions may lease publicly owned lands for the purpose of oil or gas or metallic minerals exploration and production.  Any such leases shall be entered into on behalf of the state by the executive council, on behalf of a county by the board of supervisors, on behalf of a city by the council and on behalf of another political subdivision by the governing body.
Permits and Easements for Construction and Related Activities on Public Lands and Waters (Iowa) Iowa Environmental Regulations Yes State/Province These rules establish procedures and regulate the evaluation and issuance of permits for construction or other related activities that alter the physical characteristics of public lands and waters under the jurisdiction of the commission, including those activities that occur over or under such lands and waters.
Pipelines and Underground Gas Storage (Iowa) Iowa Environmental Regulations Yes State/Province These rules apply to intrastate transport of natural gas and other substances via pipeline, as well as underground gas storage facilities. The construction and operation of such infrastructure requires a permit from the Utilities Board. In granting a permit, the board will also adopt rules establishing standards for land restoration during and after pipeline construction.
Prevention, Abatement, and Control of Hazardous Substance Release (Iowa) Iowa Environmental Regulations Yes State/Province The Department of Natural Resources is authorized to establish rules regarding the prevention and mitigation of hazardous substance release. These sections contain information on the notification of spills and the removal of hazardous substances.
Protected Water Area System (Iowa) Iowa Environmental Regulations Yes State/Province The Natural Resource Commission maintains a state plan for the design and establishment of a protected water area system and those adjacent lands needed to protect the integrity of that system. A protected water area is defined as a river, lake, wetland, or other body of water permanently designated for special protection. Special management plans are established for each protected water area.
Protected Water Sources (Iowa) Iowa Environmental Regulations Yes State/Province This chapter designates protected water sources, which are subject to additional special conditions regarding water use. Permit applications for water withdrawals from these sources may still be evaluated on a case-by-case basis; applicants are required to demonstrate the effects that will result from such withdrawal. Current protected water sources are listed in section 567.53.7.
Public Utility Regulation (Iowa) Iowa Environmental Regulations Yes State/Province This section applies to any person, partnership, business association, or corporation that owns or operates any facilities for furnishing gas by piped distribution system, electricity, communications services, or water to the public for compensation. Regulations pertaining to these facilities can be found in this section. Some exemptions apply.
Qualifying RPS State Export Markets (Iowa) Iowa Renewables Portfolio Standards and Goals Yes State/Province This entry lists the states with Renewable Portfolio Standard (RPS) policies that accept generation located in Iowa as eligible sources towards their RPS targets or goals. For specific information with regard to eligible technologies or other restrictions which may vary by state, see the RPS policy entries for the individual states, shown below in the Authority listings. Typically energy must be delivered to an in-state utility or Load Serving Entity, and often only a portion of compliance targets may be met by out-of-state generation. In addition to geographic and energy delivery requirements, ownership, registry, and other requirements may apply, such as resource eligibility, generator vintage and capacity limitations, as well as limits on Renewable Energy Certificate (REC) vintage. The listing applies to RPS Main Tiers only, and excludes solar or distributed generation that may require interconnection only within the RPS state. This assessment is based on energy delivery requirements and reasonable transmission availability. Acceptance of unbundled RECs varies. There may be additional sales opportunities in RPS states outside the Eastern Interconnection. REC prices in markets with voluntary goals (Indiana, North Dakota, South Dakota) may be lower.
Radiation Machines and Radioactive Materials (Iowa) Iowa Environmental Regulations Yes State/Province These chapters describe general provisions and regulatory requirements; registration, licensure, and transportation of radioactive materials; and exposure standards for radiation protection.
Rates for Alternate Energy Production Facilities (Iowa) Iowa Generating Facility Rate-Making Yes State/Province The Utilities Board may require public utilities furnishing gas, electricity, communications, or water to public consumers, to own alternate energy production facilities, enter into long-term contracts to purchase power from such facilities, and/or provide supplemental or backup power to alternate energy production facilities. Uniform rates for these transactions will be set by the board. Some exemptions apply.
Recreational Lake and Water Quality Districts (Iowa) Iowa Environmental Regulations Yes State/Province Territory contiguous to a recreational lake may be incorporated into a recreational lake and water quality district if such action is conducive to the public health, comfort, convenience, water quality, or welfare. Development or construction in such a district is restricted.
Renewable Energy Equipment Exemption (Iowa) Iowa Sales Tax Incentive Yes State/Territory Iowa allow a sales tax exemption for solar, wind, and hydroelectricity equipment. As of August 2014, the Iowa sales tax rate is 6%.


Wind


For wind energy the exemption includes the total cost of wind energy equipment and all materials used to manufacture, install, or construct wind energy systems. The exemption does not apply to equipment used to construct a plant to manufacture wind energy systems.


Solar


Effective July 1, 2006, solar energy equipment is also exempt from the state sales tax. Solar equipment means any equipment that is used to convert incident solar radiation to energy, or equipment used to transform the converted energy to storage or to some point of use.


Hydroelectricity


In May 2013 a sales tax exemption was also added for hydroelectricity conversion equipment. This includes, but is not limited to, generators, turbines, powerhouses, intakes, coffer dams, walls, water conduits, tailraces, other concrete components, electric equipment substations, poles, wires, transformers, breakers, and switches used to convert water, water power, or hydroelectricity to a form of usable energy.
Renewable Energy Production Tax Credit (Personal) (Iowa) Iowa Personal Tax Credit Yes State/Territory In June 2005, Iowa enacted legislation creating two separate production tax credit programs for energy generated by eligible wind and renewable energy facilities. An eligible facility can qualify for only one of the two credits.


Wind and Other Renewable-Energy Facilities Tax Credit (Iowa Code § 476C)


Eligible types of renewable energy under this tax credit include wind, biogas recovery, biomass, methane gas recovery, solar, or “refuse”. The tax credit available to producers or purchasers of these types of renewable energy is in the amount of:


  • $0.015 per kilowatt-hour (kWh) of electricity,
  • $4.50 per million British thermal units (BTUs) of heat for a commercial purpose,
  • $4.50 per million BTUs of biogas or methane gas used to generate electricity, or
  • $1.44 per thousand cubic feet of hydrogen fuel generated by and purchased from an eligible renewable energy facility or used for on-site consumption.

This tax credit may be applied toward the state's personal income tax, business tax, financial institutions tax, or sales and use tax.


To qualify for the credit, a renewable energy facility must be at least 51% owned by specifically defined qualifying owners, be approved as eligible by the Iowa Utilities Board (IUB), and placed into service within 30 months of IUB approval. Furthermore, facilities must be placed into service on or after July 1, 2005, and before January 1, 2017. Renewable energy facilities may use generated renewable energy for on-site consumption and still qualify for the tax credit unless they are smaller than 0.75 megawatts (MW) (see H.F. 672).


The maximum total amount of wind-generating nameplate capacity eligible for this credit is 363 MW. The maximum total eligibility for other renewable technologies is 53 MW, with 10 MW of nameplate capacity reserved for natural gas, methane and landfill gas, or biogas cogeneration facilities incorporated within or associated with an ethanol plant engaged in the sale of ethanol to states to meet a low carbon fuel standard. An individual facility's capacity eligibility is limited to 2.5 MW per qualifying owner, and facility owners may not have an ownership interest in more than two eligible facilities. In addition, for non-wind applications filed on or after July 1, 2011, the total nameplate capacity size of the facility may not exceed 60 MW, and the facility's total capacity eligibility is limited to 10 MW.

After eligibility status is granted, the facility may apply for tax credit certificates over a 10-year period, beginning when the facility initiates energy production. Credits will not be issued for renewable energy produced or purchased for on-site consumption after December 31, 2026. Credit certificates in excess of a taxpayer’s liability for a taxable year may be carried forward for a maximum of seven years. Certificates may be transferred or sold one time to a third party, and transferred certificates may be used against a different type of tax than that noted on the original certificate.


Solar facilities taking a credit under this provision cannot claim a credit under the Solar Energy Systems Tax Credit.


Wind-Energy Facilities Tax Credit (Iowa Code § 476B)


A production tax credit of $0.01 per kWh is available for electricity generated by eligible wind energy facilities, including electricity that is sold or used for on-site consumption. In May 2011, the maximum total program eligibility was reduced from 150 MW to 50 MW.


The tax credit may be applied toward the state's personal income tax, business income tax, financial institutions tax, sales and use tax, or energy replacement generation tax.


To qualify for the credit, a wind energy facility must be approved as eligible by the IUB and placed into service on or after July 1, 2005 but before July 1, 2012. For applications filed on or after March 1, 2008, the total nameplate capacity of the facility cannot be less than 2 MW or greater than 30 MW. Applications from schools, colleges, universities, and hospitals filed on or after July 1, 2009 must have a minimum nameplate capacity of 750 kilowatts (kW). Facilities must be operational within 18 months of IUB approval to maintain eligibility status unless they file for an extension.


There are no specific ownership criteria for individual projects; however, facility owners may not own more than two eligible facilities, and must have an executed power purchase agreement or interconnection agreement (except when the electricity is used for on-site consumption).


Once the IUB determines that a facility is eligible, facility owners may apply for wind energy tax credit certificates over a 10-year period, beginning with the initial production of electricity. Credit certificates in excess of a taxpayer’s liability for a taxable year may be carried forward for a maximum of seven years. Certificates are freely transferable (i.e., they can be transferred more than once), and transferred certificates may be used against a different type of tax than that noted on the original tax credit certificate.
Renewable Energy Production Tax Credits (Corporate) (Iowa) Iowa Corporate Tax Credit Yes State/Territory In June 2005, Iowa enacted legislation creating two separate production tax credit programs for energy generated by eligible wind and renewable energy facilities. An eligible facility can qualify for only one of the two credits.


Wind and Other Renewable-Energy Facilities Tax Credit (Iowa Code § 476C)


Eligible types of renewable energy under this tax credit include wind, biogas recovery, biomass, methane gas recovery, solar, or “refuse”. The tax credit available to producers or purchasers of these types of renewable energy is in the amount of:


  • $0.015 per kilowatt-hour (kWh) of electricity,
  • $4.50 per million British thermal units (BTUs) of heat for a commercial purpose,
  • $4.50 per million BTUs of biogas or methane gas used to generate electricity, or
  • $1.44 per thousand cubic feet of hydrogen fuel generated by and purchased from an eligible renewable energy facility or used for on-site consumption.

This tax credit may be applied toward the state's personal income tax, business tax, financial institutions tax, or sales and use tax.


To qualify for the credit, a renewable energy facility must be at least 51% owned by specifically defined qualifying owners, be approved as eligible by the Iowa Utilities Board (IUB), and placed into service within 30 months of IUB approval. Furthermore, facilities must be placed into service on or after July 1, 2005, and before January 1, 2017. Renewable energy facilities may use generated renewable energy for on-site consumption and still qualify for the tax credit unless they are smaller than 0.75 megawatts (MW) (see H.F. 672).


The maximum total amount of wind-generating nameplate capacity eligible for this credit is 363 MW. The maximum total eligibility for other renewable technologies is 53 MW, with 10 MW of nameplate capacity reserved for natural gas, methane and landfill gas, or biogas cogeneration facilities incorporated within or associated with an ethanol plant engaged in the sale of ethanol to states to meet a low carbon fuel standard. An individual facility's capacity eligibility is limited to 2.5 MW per qualifying owner, and facility owners may not have an ownership interest in more than two eligible facilities. In addition, for non-wind applications filed on or after July 1, 2011, the total nameplate capacity size of the facility may not exceed 60 MW, and the facility's total capacity eligibility is limited to 10 MW.

After eligibility status is granted, the facility may apply for tax credit certificates over a 10-year period, beginning when the facility initiates energy production. Credits will not be issued for renewable energy produced or purchased for on-site consumption after December 31, 2026. Credit certificates in excess of a taxpayer’s liability for a taxable year may be carried forward for a maximum of seven years. Certificates may be transferred or sold one time to a third party, and transferred certificates may be used against a different type of tax than that noted on the original certificate.


Solar facilities taking a credit under this provision cannot claim a credit under the Solar Energy Systems Tax Credit.


Wind-Energy Facilities Tax Credit (Iowa Code § 476B)


A production tax credit of $0.01 per kWh is available for electricity generated by eligible wind energy facilities, including electricity that is sold or used for on-site consumption. In May 2011, the maximum total program eligibility was reduced from 150 MW to 50 MW.


The tax credit may be applied toward the state's personal income tax, business income tax, financial institutions tax, sales and use tax, or energy replacement generation tax.


To qualify for the credit, a wind energy facility must be approved as eligible by the IUB and placed into service on or after July 1, 2005 but before July 1, 2012. For applications filed on or after March 1, 2008, the total nameplate capacity of the facility cannot be less than 2 MW or greater than 30 MW. Applications from schools, colleges, universities, and hospitals filed on or after July 1, 2009 must have a minimum nameplate capacity of 750 kilowatts (kW). Facilities must be operational within 18 months of IUB approval to maintain eligibility status unless they file for an extension.


There are no specific ownership criteria for individual projects; however, facility owners may not own more than two eligible facilities, and must have an executed power purchase agreement or interconnection agreement (except when the electricity is used for on-site consumption).


Once the IUB determines that a facility is eligible, facility owners may apply for wind energy tax credit certificates over a 10-year period, beginning with the initial production of electricity. Credit certificates in excess of a taxpayer’s liability for a taxable year may be carried forward for a maximum of seven years. Certificates are freely transferable (i.e., they can be transferred more than once), and transferred certificates may be used against a different type of tax than that noted on the original tax credit certificate.
Siting Requirements for Anaerobic Lagoons (Iowa) Iowa Environmental Regulations Yes State/Province This statute provides regulations for required distances between anaerobic lagoons and residences or public use areas. The separation distances may be waived or reduced with the agreement of the affected landowners.
Small Wind Innovation Zone Program and Model Ordinance Iowa Solar/Wind Permitting Standards Yes State/Territory In May 2009, the Iowa legislature created the Small Wind Innovation Zone Program, which allows any city, county, or other political subdivision to create small wind innovation zones that promote small wind production. In order to qualify for the designation, the city must adopt the Small Wind Innovation Zone Model Ordinance and also establish an expedited approval process for small wind energy systems. System owners must also enter into a model interconnection agreement with an electric utility.

Under this program, small wind is considered to be any turbine with a rated capacity of 100 kilowatts (kW) or less. The model ordinance requirements include, but are not limited to:

  • Tower Height and Setback: Towers be set back from all property lines, public right of ways, and above-ground public utility lines at least 115% of the total extended height of the turbine, unless approval is granted by other property owners. Federal Aviation Administration height regulations apply.
  • Engineering Approval: Systems of 20 kW or less must have plans and specifications approved by an Iowa registered engineer.
  • Safety: Climbing foot pegs or rungs below 12 feet must be removed to prevent unauthorized climbing. Lattice and guyed towers must have sheets of metal or wood fastened to the bottom tower section in order to prevent unauthorized climbing.
  • Sound: Systems may not "produce sound at a level that would constitute a nuisance."
  • Insurance: System owners must be able to demonstrate general liability insurance coverage for the installation and operation of the system.
  • Abandonment: Owners of an inoperable wind system will receive a notice after 6 consecutive months of inoperability. At that point, the owner will have 6 months to restore the system to operating condition or remove the system.
  • Signage: No signs can be displayed on any part of a wind system.
  • Lighting: No lighting of the system is allowed unless required by the Federal Aviation Administration or other ordinance.
A political subdivision must apply to the Iowa Utilities Board for designation as a Small Wind Innovation Zone. A utility that has one or more small wind innovation zone in its service territory must file an annual report on April 1 of each year.
Soil Conservation Districts Law (Iowa) Iowa Environmental Regulations Yes State/Province This legislation establishes a soil and water conservation division within the Iowa Department of Agriculture, as well as local soil and water conservation districts. The regulations accompanying the legislation call on the districts to develop their own soil and water conservation plans. The Soil and Water Conservation Division will also develop a state conservation plan to protect soil and water resources.
Solar Energy Systems Tax Credit (Corporate) (Iowa) Iowa Corporate Tax Credit Yes State/Territory Iowa offers an 18% corporate tax credit for solar energy systems. The credit is based on the federal tax credit for solar; a taxpayer may claim 60% of the value of the Federal Business Tax Credit. The federal tax credit is 30%, making the Iowa credit 18%. Each taxpayer may claim up to $5,000 for residential systems and $20,000 for commercial systems under this program, and any excess credits may be carried over for up to 10 years. A taxpayer may claim a credit for each separate and distinct solar installation. The cumulative value of the tax credits claimed by applicants under this program and the personal tax credit is limited to $4,500,000 per year, with a minimum of $1,000,000 reserved for credits for residential solar installations. Because of this limit, a taxpayer must complete an application to reserve the tax credit. Credits will be reserved on a first-come, first-serve basis.


Taxpayers taking a credit under this provision cannot claim a credit under the Iowa Production Tax Credit.
Solar Energy Systems Tax Credit (Personal) (Iowa) Iowa Personal Tax Credit Yes State/Territory Iowa offers an 18% individual tax credit for solar energy systems. The credit is based on the federal tax credits for solar; individuals can claim 60% of the Federal Residential Tax Credit. The federal tax credit is 30%, making the Iowa credit 18%. Each taxpayer may claim up to $5,000 for residential systems and $20,000 for commercial systems under this program, and any excess credits may be carried over for up to 10 years.


An individual may claim the tax credit allowed an LLC, S corporation, trust, estate, or partnership that elects to have the income taxed directly to the individual. The amount that the individual can claim is based upon the share of the individual's earnings of the corporate entity.


A taxpayer may claim a credit for each separate and distinct solar installation. The cumulative value of the tax credits claimed by applicants under this program and the corporate tax credit is limited to $4,500,000 per year, with a minimum of $1,000,000 reserved for credits for residential solar installations. Because of this limit, a taxpayer must complete an application for each separate and distinct solar installation to reserve the tax credit. Credits will be reserved on a first-come, first-serve basis.


Taxpayers taking a credit under this provision cannot claim a credit under the Iowa Production Tax Credit.
Solid Waste Policies (Iowa) Iowa Environmental Regulations Yes State/Province This statute establishes the support of the state for alternative waste management practices that reduce the reliance upon land disposal and incorporate resource recovery. Cities and counties are required to establish and operate a comprehensive solid waste reduction program. These regulations discuss land application of processed wastes as well as requirements for sanitary landfills and for groundwater monitoring near land disposal sites.
State Energy Program (Iowa) Iowa Industry Recruitment/Support Yes State/Province The State Energy Program exists to develop and implement a comprehensive program for the identification, development and demonstration of energy efficiency and alternative energy opportunities to meet local needs and to utilize local resources. The purpose of the program is to comply with federally required program measures, to demonstrate energy efficiency within state government, to develop and promote community energy management models, to provide energy information and education for Iowa consumers, to support the development and use of Iowa energy resources, and to evaluate procedures to improve marketing effectiveness and operation efficiency. The state is responsible for putting out a State Energy Plan which will address these issues.
Tax Increment Financing (Iowa) Iowa Industry Recruitment/Support
Property Tax Incentive
Yes State/Province Tax Increment Financing allows city councils or county boards of supervisors to use the property taxes resulting from the increase in taxable valuation caused by the construction of new industrial or commercial facilities to provide economic development incentives to a business or industry. Tax Increment Financing may be used to offset the cost of public improvements and utilities that will serve the new private development, to finance direct grants or loans to a company, or to provide the local match for federal or state economic development assistance programs.
Underground Facilities Information (Iowa) Iowa Environmental Regulations Yes State/Province This section applies to any excavation which may impact underground facilities, including those used for the conveyance of electricity or the transportation of hazardous liquids or natural gas. Excavation is prohibited unless notification takes place, as described in this chapter.
Uniform Environmental Covenants Act (Iowa) Iowa Environmental Regulations Yes State/Province This legislation adopts a version of the federal Uniform Environmental Covenants Act, specifying long-term limitations on land use for certain restricted areas.
Use, Maintenance, Removal, Inspections, and Safety of Dams (Iowa) Iowa Environmental Regulations Yes State/Province This section describes operating plans for dams with movable structures, as well as procedures for raising or lowering of impoundment levels, dam removal, and dam safety inspections.
Waste Disposal Site and Radioactive Waste Management (Iowa) Iowa Environmental Regulations Yes State/Province This section describes the considerations of the Commission in determining whether to approve the establishment and operation of a disposal site for nuclear waste. If a permit is issued, the Commission will establish standards and procedures for site operation, and require financial commitment by the site operator. This section also describes additional standards for pathological waste incinerators processing radioactive waste.
Waste Management Assistance Act (Iowa) Iowa Environmental Regulations Yes State/Province This section promotes the proper and safe storage, treatment, and disposal of solid, hazardous, and low-level radioactive wastes in Iowa, and calls on Iowans to assume responsibility for waste disposal within the state. The Department of Natural Resources is tasked with establishing a comprehensive solid waste management plan. In addition, the Department, in cooperation with the small business assistance center at the University of Northern Iowa, shall work with generators of hazardous wastes in the state to develop and implement aggressive waste minimization programs.
Wastewater Construction and Operation Permits (Iowa) Iowa Environmental Regulations Yes State/Province These regulations describe permit requirements for the construction and operation of facilities treating wastewater, and provide separation distances from other water sources.
Water Protection Projects and Practices (Iowa) Iowa Environmental Regulations Yes State/Province This statute calls on soil and water conservation districts to carry out district-wide and multiple-district projects to support water protection practices, including projects to protect the state's groundwater and surface water from point and nonpoint sources of contamination, including but not limited to contamination by agricultural drainage wells, sinkholes, sedimentation, or chemical pollutants.
Water Quality Standards (Iowa) Iowa Environmental Regulations Yes State/Province These regulations describe water quality standards for surface water sources.
Wildlife Refuges (Iowa) Iowa Environmental Regulations Yes State/Province This document contains a list of wildlife refuges and sanctuaries in the state.