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House
File
2550
-
Introduced
HOUSE
FILE
2550
BY
THOMSON
A
BILL
FOR
An
Act
relating
to
small
nuclear
reactors,
including
the
1
establishment
of
the
Iowa
modular
reactor
committee
within
2
the
economic
development
authority,
financial
incentives,
3
and
the
potential
establishment
of
related
education
4
programs
and
including
effective
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
15.522,
subsection
2,
Code
2026,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
0l.
Small
modular
reactors,
as
that
term
3
is
defined
in
section
15.540.
4
Sec.
2.
NEW
SECTION
.
15.540
Definitions.
5
For
purposes
of
this
part,
unless
the
context
otherwise
6
requires:
7
1.
“Committee”
means
the
Iowa
small
modular
reactor
8
committee
established
in
section
15.541.
9
2.
“Qualified
project”
means
a
small
modular
reactor
project
10
that
involves
any
of
the
following:
11
a.
Small
modular
reactor
design,
licensing,
or
testing.
12
b.
Small
modular
reactor
fabrication
or
assembly.
13
c.
Small
modular
reactor
fuel
handling,
storage,
or
14
recycling
technology.
15
d.
Small
modular
reactor
power
generation
facilities.
16
e.
Industrial
heat
or
hydrogen
production
coupled
to
small
17
modular
reactors.
18
f.
Small
modular
reactor-related
supply
chain
manufacturing,
19
certified
or
certifiable
under
nuclear
quality
standards.
20
3.
“Small
modular
reactor”
means
a
nuclear
fission
reactor
21
that
meets
all
of
the
following
requirements:
22
a.
The
small
modular
reactor
is
designed
for
factory
23
fabrication
and
modular
deployment.
24
b.
The
small
modular
reactor
is
licensed
or
licensable
by
25
the
United
States
nuclear
regulatory
commission.
26
Sec.
3.
NEW
SECTION
.
15.541
Iowa
small
modular
reactor
27
committee.
28
1.
The
Iowa
small
modular
reactor
committee
is
established
29
within
the
authority.
The
committee
shall
do
all
of
the
30
following:
31
a.
Serve
as
the
statewide
coordinating
entity
for
small
32
modular
reactor
development.
33
b.
Act
as
a
permitting
and
interagency
coordination
office
34
as
permitted
by
federal
law.
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c.
Designate
small
modular
reactor
priority
development
1
zones
for
purposes
of
this
section.
2
d.
Administer
financial
incentives
for
purposes
of
this
3
section.
4
e.
Coordinate
workforce,
research,
and
education
initiatives
5
for
purposes
of
this
section.
6
f.
Market
Iowa
nationally
and
internationally
as
a
small
7
modular
reactor
hub.
8
g.
Enter
into
public-private
partnerships
for
purposes
of
9
this
section.
10
2.
The
committee
shall
accept,
process,
and
approve
11
applications
for
qualified
projects.
The
committee
shall
issue
12
a
determination
on
an
application
for
a
qualified
project
no
13
later
than
one
hundred
eighty
calendar
days
after
receipt
of
a
14
completed
application,
unless
extended
for
good
cause.
Failure
15
to
deny
or
accept
an
application
for
a
qualified
project
within
16
the
time
limit
shall
constitute
conditional
approval
of
the
17
application,
subject
to
safety
conditions.
18
3.
The
committee
may
designate
pre-certified
small
modular
19
reactor
sites
as
permitted
by
federal
law
including
but
not
20
limited
to
any
of
the
following:
21
a.
Brownfields.
22
b.
Retired
fossil
fuel
generation
sites.
23
c.
Industrial
campuses.
24
d.
State
owned
land.
25
4.
The
committee
may
issue
revenue
bonds
to
qualified
26
projects
from
the
revenue
bonds
capitals
fund
created
in
27
section
12.88,
subject
to
appropriation
by
the
Iowa
finance
28
authority
and
subject
to
approval
of
the
economic
development
29
authority.
30
Sec.
4.
NEW
SECTION
.
15.542
Qualified
project
tax
31
incentives.
32
1.
a.
For
tax
years
beginning
on
or
after
January
1,
2027,
33
a
tax
credit
shall
be
allowed
against
the
taxes
imposed
in
34
chapter
422,
subchapters
II,
III,
and
V,
and
in
chapter
432,
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and
against
the
moneys
and
credits
tax
imposed
in
section
1
533.329,
for
a
portion
of
a
taxpayer’s
qualified
capital
2
investment
in
a
qualified
project.
3
b.
An
individual
may
claim
a
tax
credit
under
this
section
4
as
a
partnership,
limited
liability
company,
S
corporation,
5
estate,
or
trust
electing
to
have
income
taxed
directly
to
6
the
individual.
The
amount
claimed
by
the
individual
shall
7
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
8
from
the
partnership,
limited
liability
company,
S
corporation,
9
estate,
or
trust.
10
c.
An
individual
affiliated
with
a
qualified
project
shall
11
not
be
eligible
for
a
tax
credit
under
this
section.
12
d.
In
lieu
of
claiming
a
refund,
a
taxpayer
may
elect
to
13
have
the
overpayment
shown
on
the
taxpayer’s
final,
completed
14
return
credited
to
the
tax
liability
for
the
immediately
15
succeeding
tax
year.
16
e.
The
amount
of
the
tax
credit
shall
equal
thirty
percent
17
of
the
taxpayer’s
qualified
capital
investment
in
a
qualified
18
project.
19
f.
A
tax
credit
shall
not
be
transferred
to
any
other
20
person.
21
g.
The
authority
shall
develop
a
system
for
registration
and
22
issuance
of
tax
credits
authorized
pursuant
to
this
subsection
23
and
shall
control
distribution
of
all
tax
credit
certificates
24
to
investors
pursuant
to
this
subsection.
The
authority
25
shall
develop
rules
for
the
qualification
and
administration
26
of
qualified
projects.
The
department
of
revenue
shall
27
adopt
rules
pursuant
to
chapter
17A
as
necessary
for
the
28
administration
of
this
subsection.
29
2.
A
qualified
small
modular
reactor
facility
responsible
30
for
a
qualified
project
may
enter
into
an
agreement
with
the
31
authority
for
a
supplemental
new
jobs
credit
from
withholding
32
from
jobs
created
under
the
qualified
project.
The
agreement
33
shall
provide
that
a
new
jobs
credit
from
withholding
in
an
34
amount
equal
to
one
and
one-half
percent
of
the
gross
wages
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paid
by
the
qualified
small
modular
reactor
facility
pursuant
1
to
section
422.16
is
authorized
to
fund
the
qualified
project.
2
3.
a.
A
qualified
small
modular
reactor
facility
3
responsible
for
a
qualified
project
may
claim
a
refund
of
4
the
sales
and
use
taxes
paid
under
chapter
423
prior
to
the
5
completion
of
the
qualified
project
that
are
directly
related
6
to
a
qualified
project
and
specified
in
an
agreement
between
7
the
qualified
small
modular
reactor
facility
and
the
authority.
8
b.
To
receive
a
refund,
a
claim
shall
be
filed
by
a
9
qualified
small
modular
reactor
facility
with
the
department
10
of
revenue
as
follows:
11
(1)
The
qualified
small
modular
reactor
facility
shall
12
state
under
oath,
on
forms
provided
by
the
department
of
13
revenue,
the
amount
of
sales
and
use
taxes
paid
under
chapter
14
423
prior
to
the
completion
of
the
qualified
project
that
are
15
directly
related
to
a
qualified
project
and
specified
in
the
16
agreement.
17
(2)
The
qualified
small
modular
reactor
facility
shall,
18
after
the
agreement
completion
date,
make
application
to
the
19
department
of
revenue
for
any
refund
of
the
amount
of
sales
and
20
use
taxes
paid
under
chapter
423
prior
to
the
completion
of
the
21
qualified
project
that
were
directly
related
to
a
qualified
22
project
and
specified
in
the
agreement.
The
application
shall
23
be
made
in
the
manner
and
upon
forms
to
be
provided
by
the
24
department
of
revenue.
The
department
of
revenue
shall
audit
25
the
claim
and,
if
approved,
issue
a
warrant
to
the
qualified
26
small
modular
reactor
facility.
The
application
must
be
made
27
within
one
year
after
the
agreement
completion
date.
A
claim
28
filed
in
accordance
with
this
subsection
shall
not
be
denied
by
29
reason
of
a
time
limitation
for
filing
a
refund
claim
set
forth
30
in
section
423.47.
31
4.
a.
A
community
in
which
a
qualified
small
modular
32
reactor
facility
is
located
may
grant
the
qualified
small
33
modular
reactor
facility
a
property
tax
exemption
for
a
portion
34
of
the
actual
value
added
by
improvements
to
real
property
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directly
related
to
the
qualified
small
modular
reactor
1
facility’s
created
jobs.
The
community
may
allow
a
property
2
tax
exemption
for
a
period
not
to
exceed
twenty
years
beginning
3
the
year
that
the
improvements
to
real
property
are
first
4
assessed
for
taxation.
5
b.
For
purposes
of
this
subsection,
“improvements”
means
new
6
construction
and
rehabilitation
of,
and
additions
to,
existing
7
structures.
8
c.
A
property
tax
exemption
granted
under
paragraph
9
“a”
shall
apply
to
all
taxing
districts,
except
for
school
10
districts,
in
which
the
real
property
is
located.
11
Sec.
5.
NEW
SECTION
.
15.543
Local
government
restrictions
12
——
prohibition.
13
A
local
government
shall
not
impose
requirements
on
14
qualified
projects
that
are
inconsistent
with
or
more
15
restrictive
than
provided
by
state
or
federal
law,
except
for
16
generally
applicable
zoning
standards
that
are
not
specifically
17
targeted
at
nuclear
facilities.
18
Sec.
6.
NEW
SECTION
.
15.544
Loan
guarantee
program.
19
1.
The
economic
development
authority,
in
partnership
with
20
the
Iowa
finance
authority,
shall
establish
and
administer
a
21
loan
guarantee
program
to
encourage
qualified
small
modular
22
reactor
facilities
to
invest
in
qualified
projects
in
the
23
state.
24
2.
In
order
for
a
loan
to
be
guaranteed,
all
of
the
25
following
conditions
must
be
true:
26
a.
The
loan
must
finance
a
qualified
project,
or
finance
27
acquisition
or
refinancing
costs
associated
with
the
qualified
28
project.
29
b.
A
federally
insured
financial
lending
institution
issued
30
the
loan.
31
3.
a.
For
a
loan
amount
less
than
or
equal
to
five
hundred
32
thousand
dollars,
the
economic
development
authority
may
33
guarantee
up
to
fifty
percent
of
the
loan
amount.
34
b.
For
a
loan
amount
greater
than
five
hundred
thousand
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dollars,
the
economic
development
authority
may
provide
a
1
maximum
loan
guarantee
of
up
to
two
hundred
fifty
thousand
2
dollars.
3
4.
A
project
loan
must
be
secured
by
a
mortgage
against
the
4
project
property.
5
5.
The
economic
development
authority
may
guarantee
loans
6
for
up
to
five
years.
The
economic
development
authority
7
may
extend
the
loan
guarantee
for
an
additional
five
years
8
if
an
underwriting
review
finds
that
an
extension
would
be
9
beneficial.
10
6.
The
lender
shall
pay
an
annual
loan
guarantee
fee
as
set
11
forth
by
rule.
12
7.
The
economic
development
authority
reserves
the
right
13
to
deny
a
loan
guarantee
for
unreasonable
bank
loan
fees
or
14
interest
rate.
15
8.
The
loan
must
not
be
insured
or
guaranteed
by
another
16
local,
state,
or
federal
guarantee
program.
17
9.
The
loan
guarantee
is
not
transferable
if
the
loan
or
the
18
qualified
project
is
sold
or
transferred.
19
10.
Moneys
for
the
program
may
consist
of
any
moneys
20
appropriated
by
the
general
assembly
for
purposes
of
this
21
section,
and
any
other
moneys
that
are
lawfully
available
to
22
the
economic
development
authority.
23
Sec.
7.
NEW
SECTION
.
15.545
Federal
funding.
24
The
authority
shall
maximize
the
use
of
federal
tax
credits,
25
grants,
and
defense
programs
for
purposes
of
this
part.
26
Sec.
8.
NEW
SECTION
.
15.546
Rules.
27
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
to
28
administer
and
enforce
this
part.
29
Sec.
9.
STATE
BOARD
OF
REGENTS
AND
COMMUNITY
COLLEGES
——
30
STUDY.
31
1.
The
state
board
of
regents
shall
conduct
a
study
32
regarding
the
feasibility
of
creating
a
nuclear
engineering
and
33
small
modular
reactor
operations
track
at
institutions
under
34
section
262.7.
The
study
shall
include
the
costs
and
resources
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necessary
to
create
and
administer
a
nuclear
engineering
and
1
small
modular
reactor
operations
track,
including
but
not
2
limited
to
the
cost
of
additional
staffing,
classrooms,
and
3
materials.
The
state
board
of
regents
shall
include
the
study
4
findings
in
a
report
submitted
to
the
general
assembly
on
or
5
before
January
1,
2027.
6
2.
The
department
of
education
shall
conduct
a
study
7
regarding
the
feasibility
of
creating
a
certificate
program
8
in
nuclear
technology,
welding,
and
controls.
The
study
9
shall
include
the
costs
and
resources
necessary
to
create
and
10
administer
such
certificate
program,
including
but
not
limited
11
to
the
cost
of
additional
staffing,
classrooms,
and
materials.
12
The
department
of
education
shall
include
study
findings
in
a
13
report
submitted
to
the
general
assembly
on
or
before
January
14
1,
2027.
15
3.
The
state
board
of
regents
shall
conduct
a
study
16
regarding
the
feasibility
of
establishing
a
small
modular
17
reactor
research
hub
at
the
Iowa
state
university
of
science
18
and
technology.
The
study
shall
include
the
costs
and
19
resources
necessary
to
create
and
administer
a
small
modular
20
reactor
research
hub,
including
but
not
limited
to
the
cost
of
21
additional
staffing,
infrastructure,
and
materials.
The
state
22
board
of
regents
shall
include
the
study
findings
in
a
report
23
submitted
to
the
general
assembly
on
or
before
January
1,
2027.
24
Sec.
10.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
25
to
designate
sections
15.540
through
15.546,
as
enacted
in
this
26
Act,
as
part
36
of
subchapter
II.
27
Sec.
11.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
28
immediate
importance,
takes
effect
upon
enactment.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
relates
to
small
modular
reactors,
including
the
33
establishment
of
the
Iowa
small
modular
reactor
committee
34
within
the
economic
development
authority,
financial
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incentives,
and
the
potential
establishment
of
related
1
education
programs.
2
The
bill
establishes
the
Iowa
small
modular
reactor
3
committee
(committee)
within
the
economic
development
authority
4
(authority),
and
details
the
responsibilities
of
the
committee.
5
The
committee
shall
accept,
process,
and
approve
applications
6
for
qualified
projects,
and
issue
a
determination
on
an
7
application
for
a
qualified
project
no
later
than
180
days
8
after
receipt
of
a
completed
application,
unless
extended
for
9
good
cause.
Failure
to
deny
or
accept
an
application
for
10
a
qualified
project
within
the
time
limit
shall
constitute
11
conditional
approval
of
the
application
subject
to
safety
12
conditions.
The
committee
may
designate
pre-certified
small
13
modular
reactor
sites
as
permitted
by
federal
law,
and
may
14
issue
revenue
bonds
to
qualified
projects.
15
The
bill
defines
“qualified
project”
as
a
small
modular
16
reactor
project
that
involves
small
modular
reactor
design,
17
licensing,
or
testing,
fabrication
or
assembly,
fuel
handling,
18
storage,
or
recycling
technology,
power
generation
facilities,
19
industrial
heat
or
hydrogen
production
coupled
to
small
modular
20
reactors,
and
related
supply
chain
manufacturing
certified
or
21
certifiable
under
nuclear
quality
standards.
The
bill
defines
22
“small
modular
reactor”
as
a
nuclear
fission
reactor
that
is
23
designed
for
factory
fabrication
and
modular
deployment,
and
24
licensed
or
licensable
by
the
United
States
nuclear
regulatory
25
commission.
26
The
bill
details
tax
incentives
for
qualified
projects,
27
including
a
research
and
development
tax
credit,
a
tax
credit
28
for
the
moneys
and
credits
tax,
supplemental
new
jobs
credit
29
from
withholding,
refund
of
the
sales
and
use
taxes,
and
30
property
tax
exemption.
31
The
bill
prohibits
a
local
government
from
imposing
32
requirements
on
qualified
projects
that
are
inconsistent
with
33
or
more
restrictive
than
provided
by
state
for
federal
law,
34
except
for
generally
applicable
zoning
standards
that
are
not
35
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H.F.
2550
specifically
targeted
at
nuclear
facilities.
1
Under
the
bill,
the
economic
development
authority,
in
2
partnership
with
the
Iowa
finance
authority,
shall
establish
3
and
administer
a
loan
guarantee
program
to
encourage
qualified
4
small
modular
reactor
facilities
to
invest
in
qualified
5
projects
in
the
state,
as
detailed
in
the
bill.
6
The
authority
shall
maximize
the
use
of
federal
tax
credits,
7
grants,
and
defense
programs
for
purposes
of
the
bill.
8
The
authority
shall
adopt
rules
to
administer
and
enforce
9
the
bill.
10
The
bill
requires
the
state
board
of
regents
to
conduct
11
a
study
regarding
the
feasibility
of
creating
a
nuclear
12
engineering
and
small
modular
reactor
operations
track
at
13
institutions,
including
the
costs
and
resources
necessary
to
14
create
and
administer
such
track,
and
shall
include
the
study
15
findings
in
a
report
submitted
to
the
general
assembly
on
or
16
before
January
1,
2027.
17
The
board
of
education
shall
conduct
a
study
regarding
18
the
feasibility
of
creating
a
certificate
program
in
nuclear
19
technology,
welding,
and
controls,
including
the
costs
and
20
resources
necessary
to
create
and
administer
such
certificate
21
program,
and
shall
include
the
study
findings
in
a
report
22
submitted
to
the
general
assembly
on
or
before
January
1,
2027.
23
The
state
board
of
regents
shall
conduct
a
study
regarding
24
the
feasibility
of
establishing
a
small
modular
reactor
25
research
hub
at
the
Iowa
state
university
of
science
and
26
technology,
including
the
costs
and
resources
necessary,
and
27
shall
include
the
study
findings
in
a
report
submitted
to
the
28
general
assembly
on
or
before
January
1,
2027.
29
The
bill
takes
effect
upon
enactment.
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