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404
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Introduced
HOUSE
FILE
404
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
81)
A
BILL
FOR
An
Act
relating
to
solar
energy
by
establishing
a
community
1
solar
facility
program.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1491HV
(2)
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sb/js
H.F.
404
Section
1.
Section
476.1,
Code
2025,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
5.
A
community
solar
facility
established
3
pursuant
to
section
476.50
shall
not
be
regarded
as
a
public
4
utility
for
purposes
of
this
chapter.
5
Sec.
2.
Section
476.25,
Code
2025,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
4.
The
furnishing
of
electricity
pursuant
8
to
a
community
solar
facility
under
section
476.50
shall
not
9
be
considered
an
unnecessary
duplication
of
electric
utility
10
facilities
and
shall
not
constitute
a
violation
of
this
11
section.
12
Sec.
3.
NEW
SECTION
.
476.50
Community
solar
facility
13
program
——
established.
14
1.
As
used
in
this
section,
unless
the
context
otherwise
15
requires:
16
a.
“Bill
credit”
means
the
monetary
value
of
the
electricity
17
in
kilowatt-hours
generated
by
the
community
solar
facility
18
allocated
to
a
subscriber
to
offset
that
subscriber’s
19
electricity
bill.
20
b.
“Brownfield
site”
means
an
abandoned,
idled,
or
21
underutilized
industrial
or
commercial
facility
where
22
expansion
or
redevelopment
is
complicated
by
real
or
perceived
23
environmental
contamination,
including
wastewater
treatment
24
lagoons,
active
and
former
quarry
and
mining
ponds,
storm
25
water
detention
ponds,
cooling
ponds,
and
manure
ponds.
A
26
brownfield
site
includes
property
contiguous
with
the
property
27
on
which
the
individual
or
commercial
facility
is
located.
A
28
brownfield
site
does
not
include
property
that
has
been
placed,
29
or
is
proposed
for
placement,
on
the
national
priorities
list
30
established
pursuant
to
the
federal
Comprehensive
Environmental
31
Response,
Compensation,
and
Liability
Act,
42
U.S.C.
§9601
et
32
seq.
33
c.
(1)
Except
as
provided
in
subparagraph
(2),
a
“community
34
solar
facility”
means
a
distributed
generation
facility
that
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generates
electricity
by
means
of
a
solar
photovoltaic
device
1
whereby
subscribers
receive
a
bill
credit
for
the
electricity
2
generated
in
proportion
to
the
size
of
the
customer’s
3
subscription
and
all
of
the
following
conditions
apply:
4
(a)
The
facility
is
located
on
one
or
more
parcels
of
5
land
within
the
assigned
area
of
service
of
that
utility
and
6
no
other
community
solar
facility
under
the
control
of
the
7
same
entity,
an
affiliate’s
entity,
or
an
entity
under
common
8
control
is
located
on
that
land.
9
(b)
At
the
time
the
facility
initially
meets
the
10
requirements
set
forth
in
the
tariff
to
participate
in
the
11
program,
the
facility
is
not
located
within
one
mile,
measured
12
from
the
point
of
interconnection,
of
a
community
solar
13
facility
under
the
control
of
the
same
entity.
14
(c)
The
facility
has
at
least
three
subscribers.
15
(d)
The
facility
generates
not
more
than
five
megawatts
16
of
electricity
as
measured
in
alternating
current
unless
the
17
facility
is
located
on
a
brownfield
site,
whereby
the
facility
18
may
generate
not
more
than
twenty
megawatts
of
electricity
as
19
measured
in
alternating
current.
20
(e)
No
subscriber
holds
more
than
a
forty
percent
interest
21
in
the
output
of
the
facility.
22
(f)
Not
less
than
sixty
percent
of
the
capacity
of
the
23
facility
is
subscribed
to
by
subscriptions
of
not
more
than
24
forty
kilowatts.
25
(2)
A
distributed
generation
facility
qualifies
as
a
26
community
solar
facility
if
the
distributed
generation
facility
27
generates
not
more
than
one
megawatt
of
electricity
as
measured
28
in
alternating
current
and
meets
the
conditions
described
in
29
subparagraph
(1),
subparagraph
divisions
(a),
(b),
and
(d),
30
even
if
the
distributed
generation
facility
does
not
meet
any
31
of
the
conditions
described
in
subparagraph
(1),
subparagraph
32
divisions
(c),
(e),
and
(f).
33
d.
“Electric
utility”
means
a
public
utility
that
furnishes
34
electricity
to
the
public
for
compensation
that
is
required
to
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be
rate-regulated
under
this
chapter.
1
e.
“Subscriber”
means
a
customer
of
an
electric
utility
2
subject
to
this
section
who
owns
one
or
more
subscriptions
to
a
3
community
solar
facility
interconnected
with
that
utility.
4
f.
“Subscriber
organization”
means
a
for-profit
or
nonprofit
5
entity
that
owns
or
operates
one
or
more
community
solar
6
facilities.
7
g.
“Subscription”
means
a
proportional
contractual
interest
8
in
a
community
solar
facility
under
which
the
estimated
bill
9
credits
of
the
subscriber
do
not
exceed
the
average
annual
10
bill
for
the
customer
account
to
which
the
subscription
is
11
attributed.
12
2.
a.
A
community
solar
facility
program
is
established
13
to
encourage
and
enhance
the
generation
of
solar
energy
and
to
14
encourage
and
enhance
the
ability
of
electric
utility
customers
15
to
participate
in
and
derive
benefit
from
alternate
solar
16
energy
projects.
17
b.
An
electric
utility
shall
provide
a
bill
credit
to
a
18
subscriber’s
subsequent
monthly
electric
bill.
Any
amount
of
19
the
bill
credit
that
exceeds
the
subscriber’s
monthly
bill
20
shall
be
carried
over
in
the
subscriber’s
account
and
applied
21
to
the
next
month’s
bill
in
perpetuity.
22
c.
An
electric
utility
shall
be
required
to
bill
subscribers
23
to
a
community
solar
facility
in
accordance
with
section
24
476.49,
to
the
extent
that
section
does
not
conflict
with
this
25
section.
26
d.
An
electric
utility
shall
review
its
interconnection
27
processes
to
ensure
they
are
adequate
to
facilitate
the
28
efficient
and
cost-effective
interconnection
of
community
solar
29
facilities
and
allow
an
investor-owned
electric
utility
to
30
recover
reasonable
interconnection
costs
for
each
community
31
solar
facility.
32
e.
A
subscriber
may
subscribe
all
of
their
electricity
33
meters
to
a
community
solar
facility.
34
f.
Community
solar
facilities
may
be
owned
by
investors.
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g.
An
electric
utility
shall
provide
a
bill
credit
to
1
a
subscriber’s
subsequent
monthly
electric
bill
for
the
2
proportional
output
of
a
community
solar
facility
attributable
3
to
that
subscriber
for
not
less
than
twenty-five
years
from
the
4
date
the
solar
facility
is
first
placed
into
operation.
5
h.
A
subscriber
organization
shall
periodically
and
in
6
a
standardized
electronic
format
provide
to
the
electric
7
utility
whose
service
territory
includes
the
location
of
the
8
subscriber
organization’s
community
solar
facility
a
subscriber
9
list
indicating
the
percentage
of
generation
attributable
10
to
each
of
the
electric
utility’s
retail
customers
who
are
11
subscribers
to
a
community
solar
facility
in
accordance
with
12
the
subscriber’s
portion
of
the
output
of
the
community
solar
13
facility.
The
electric
utility
shall
create
a
platform
for
the
14
subscriber
organization
to
periodically
communicate
updates
to
15
the
subscriber
list
to
reflect
canceling
subscribers
and
new
16
subscribers.
17
i.
An
electric
utility
shall
provide
a
subscriber
18
organization
a
report
each
month
in
a
standardized
electronic
19
format
detailing
the
total
value
of
bill
credits
generated
20
by
the
subscriber
organization’s
community
solar
facility
in
21
the
prior
month
and
the
amount
of
bill
credits
applied
to
each
22
subscriber.
23
j.
A
subscriber
organization
may
accumulate
bill
credits
24
if
all
of
the
electricity
generated
by
a
community
solar
25
facility
is
not
allocated
to
subscribers
in
a
given
month.
On
26
an
annual
basis,
the
subscriber
organization
shall
furnish
27
to
the
electric
utility
whose
service
territory
includes
the
28
location
of
the
subscriber
organization’s
community
solar
29
facility
instructions
for
distributing
accumulated
bill
30
credits
to
subscribers.
The
electric
utility
shall
apply
31
accumulated
credits
to
a
subscriber’s
electric
utility
account
32
in
accordance
with
section
476.49.
Any
credits
not
distributed
33
to
subscribers
annually
will
be
forfeited.
34
k.
Any
renewable
energy
credits
created
from
the
production
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of
electricity
in
a
community
solar
facility
are
the
property
1
of
the
subscriber
organization
that
owns
or
operates
the
2
community
solar
facility.
The
subscriber
organization
may
3
sell,
accumulate,
retire,
or
distribute
to
subscribers
the
4
renewable
energy
credits
of
the
subscriber
organization.
5
3.
The
commission
shall
adopt
rules
to
implement
the
6
provisions
of
this
section
that
accomplish
all
of
the
7
following:
8
a.
Reasonably
allow
for
the
creation
and
financing
of
9
community
solar
facilities.
10
b.
Allow
all
customer
classes
to
participate
as
subscribers
11
to
a
community
solar
facility,
and
ensure
participation
12
opportunities
for
all
customer
classes.
13
c.
Prohibit
removing
a
customer
from
the
customer’s
14
applicable
customer
class
due
to
the
customer
subscribing
to
a
15
community
solar
facility.
16
d.
Reasonably
allow
for
the
transferability
and
portability
17
of
subscriptions,
including
allowing
a
subscriber
to
retain
a
18
subscription
to
a
community
solar
facility
if
the
subscriber
19
moves
within
the
same
investor-owned
electric
utility’s
service
20
territory.
21
e.
Modify
existing
interconnection
standards,
fees,
22
and
processes
as
needed
to
facilitate
the
efficient
and
23
cost-effective
interconnection
of
community
solar
facilities
24
and
that
allow
an
electric
utility
to
recover
reasonable
25
interconnection
costs
for
each
community
solar
facility.
26
f.
Provide
for
consumer
protection
in
accordance
with
27
existing
laws.
28
g.
Allow
an
electric
utility
to
recover
costs
of
applying
29
bill
credits
under
this
section.
30
h.
Require
electric
utilities
to
efficiently
connect
31
community
solar
facilities
to
the
electrical
distribution
grid
32
and
not
discriminate
against
community
solar
facilities.
33
i.
Require
a
subscriber
organization
to
satisfy
34
interconnection
process
benchmarks,
demonstrate
site
control,
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and
obtain
all
applicable
nonministerial
permits
for
a
1
community
solar
facility
before
the
subscriber
organization
2
owns
or
operates
the
facility.
3
4.
a.
Not
later
than
eighteen
months
after
a
community
4
solar
facility
has
ceased
generating
electricity,
except
for
5
instances
when
the
owner
is
actively
working
to
recommence
6
production
of
electricity,
including
instances
following
the
7
occurrence
of
a
force
majeure
or
similar
event,
the
owner
of
8
the
community
solar
facility
shall
commence
decommissioning
of
9
the
facility.
10
b.
Unless
the
property
owner
authorizing
the
community
11
solar
facility
to
operate
on
the
property
and
the
owner
of
12
the
community
solar
facility
mutually
agree
in
writing
on
13
an
alternative
condition
for
restoring
the
property,
the
14
decommissioning
plan
for
the
community
solar
facility
shall
15
include
all
of
the
following:
16
(1)
Removal
of
all
nonelectric
utility-owned
equipment,
17
conduits,
structures,
fencing,
and
foundations
to
a
depth
of
at
18
least
three
feet
below
grade.
19
(2)
Removal
of
all
graveled
areas
and
access
roads.
20
(3)
Restoration
of
the
property
to
a
condition
reasonably
21
similar
to
its
condition
before
the
commencement
of
22
construction,
except
for
ordinary
wear
and
degradation
and
any
23
changes
to
the
condition
of
the
property
caused
by
or
at
the
24
request
of
the
property
owner.
25
(4)
To
the
extent
practicable
and
seasonally
appropriate,
26
at
the
request
of
the
property
owner,
reseeding,
or
causing
the
27
reseeding
of,
any
cleared
areas
on
the
property.
28
5.
a.
The
owner
of
a
community
solar
facility
shall
29
maintain
sufficient
financial
assurances
in
the
form
of
a
bond,
30
a
parent
company
guaranty
with
a
minimum
investment
grade
31
credit
rating
for
the
parent
company
issued
by
a
major
domestic
32
credit
rating
agency,
or
a
letter
of
credit
to
provide
for
33
decommissioning.
34
b.
The
amount
of
financial
assurance
shall
be
equal
to
the
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cost
of
decommissioning
the
community
solar
facility,
less
the
1
facility’s
salvage
value,
and
shall
be
updated
periodically,
2
but
not
less
than
every
ten
years.
3
c.
Decommissioning
and
salvage
value
costs
shall
be
4
calculated
by
an
independent
professional
engineer
at
the
5
expense
of
the
owner
of
the
community
solar
facility.
6
Sec.
4.
IMPLEMENTATION
OF
TARIFFS.
By
January
1,
2026,
an
7
electric
utility,
as
defined
in
section
476.50,
as
enacted
by
8
this
Act,
shall
file
new
or
updated
tariffs,
if
applicable,
to
9
implement
any
necessary
changes
resulting
from
this
Act.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
establishes
a
community
solar
facility
program.
14
The
bill
specifies
that
an
“electric
utility”
for
purposes
15
of
the
bill
is
a
public
utility
that
provides
electricity
16
to
the
public
for
compensation
and
is
required
to
be
17
rate-regulated
under
Code
chapter
476.
The
bill
defines
18
“brownfield
site”
to
mean
an
abandoned,
idled,
or
underutilized
19
industrial
or
commercial
facility
where
expansion
or
20
redevelopment
is
complicated
by
real
or
perceived
environmental
21
contamination,
but
not
including
property
that
has
been
placed,
22
or
is
proposed
for
placement,
on
the
national
priorities
23
list
established
pursuant
to
the
federal
Comprehensive
24
Environmental
Response,
Compensation,
and
Liability
Act.
The
25
bill
defines
“community
solar
facility”
to
mean
a
distributed
26
generation
facility
that
generates
electricity
through
solar
27
panels
whereby
subscribers
may
receive
bill
credits
for
28
the
electricity
generated
in
proportion
to
the
size
of
the
29
customer’s
subscription.
The
bill
defines
“subscriber”
to
mean
30
a
customer
of
an
electric
utility
who
owns
at
least
one
share
31
of
a
subscription
to
a
community
solar
facility.
A
“subscriber
32
organization”
is
a
for-profit
or
nonprofit
entity
that
owns
33
or
operates
one
or
more
community
solar
facilities.
The
bill
34
defines
“subscription”
to
mean
a
proportional
contractual
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interest
in
a
community
solar
facility.
1
The
bill
establishes
a
community
solar
facility
program
to
2
encourage
and
enhance
solar
energy
generation
and
the
ability
3
of
electric
public
utility
customers
to
participate
in
and
4
derive
benefit
from
alternate
solar
energy
projects.
5
The
bill
requires
an
electric
utility
to
bill
subscribers
in
6
accordance
with
billing
methods
established
pursuant
to
Code
7
section
476.49.
8
The
bill
requires
an
electric
utility
to
review
its
9
interconnection
processes
with
community
solar
facilities
to
10
ensure
adequacy,
efficiency,
and
cost-effectiveness
and
to
11
allow
an
investor-owned
electric
utility
to
recover
reasonable
12
interconnection
costs.
The
bill
allows
a
subscriber
to
include
13
all
of
the
subscriber’s
electricity
meters
in
the
community
14
solar
facility.
The
bill
provides
that
a
community
solar
15
facility
may
be
owned
by
investors.
The
bill
provides
specific
16
procedures
and
requirements
for
the
administration
of
bill
17
credits
and
subscriber
information.
18
The
bill
requires
the
Iowa
utilities
commission
to
adopt
19
rules
regarding
implementation
of
the
bill’s
provisions.
20
The
bill
requires
the
owner
of
a
community
solar
facility
to
21
have
a
decommissioning
plan,
including
financial
assurances.
22
The
bill
provides
procedures
and
requirements
for
the
23
decommissioning
of
a
community
solar
facility.
24
The
bill
requires
an
electric
utility
to
file
new
or
updated
25
tariffs,
if
applicable,
by
January
1,
2026,
to
implement
any
26
necessary
changes
resulting
from
the
bill.
27
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